- The Dow Jones briefly rose on Tuesday before falling back to the level of 38,000.
- The actions are struggling to recover their position after being destroyed by the Trump administration tariff ads last week.
- The “reciprocal” tariffs, as well as additional tariffs on China, will enter into force at midnight est.
The Dow Jones industrial average (DJIA) failed in an early recovery on Tuesday, briefly crossing over 39,000 before falling back to the level of 38,000 while the markets prepare for the start of the tariffs after the tariff ads of the “Liberation Day” of the Trump administration last week. The Dow Jones is still negotiated in recovery territory after one of the worst three -day gusts in the history of the US market, however, the upward impulse remains limited.
The wide range of “reciprocal” tariffs of the Trump administration is scheduled to take effect at midnight Est on April 9, but apparently, this was not quick enough for additional retaliation tariffs on China. According to the White House Press Secretary, Karoline Leavitt, the 104% of the US tariff packages entered into force at noon is on Tuesday in response to the 34% China counterrepressaly tariff in response to the 34% reciprocal tariffs of 34% of the US announced last week. The president of the United States, Donald Trump, entered a spiral when China responded to his tariff package, immediately announcing an additional 50% tariff over all other import taxes that were already established for Chinese goods that are imported to the US.
Tariff stress reinforces the hopes of rates cuts
As the tariff stress continues to weigh on the markets, interest rates observers are increasing their bets due to an additional relief of the Federal Reserve (Fed) in 2025. According to the Fedwatch tool of the CME, the fees operators are now assessing cuts of 125-150 basic points in the next 12 months, with 100 basic points expected for the end of the year. Rate operators are also increasing their bets due to a cut in a quarter quarter as soon as in May, with most fees of rates set in a first cut in July.
The US economic data acquire new importance later this week, with the inflation of the US consumer price index (CPI) scheduled for Thursday, followed by the inflation of the production price index (PPI) and the results of the consumer’s feeling survey of the University of Michigan (UOM) scheduled for Friday. The last round of inflation and feeling data will not yet include any direct impact of tariffs announced by the Trump administration, however, the last batch of economic data will serve as important “indicator” readings before the impacts of tariffs begin to filter directly into the economy.
Stock market news
The US stock markets are generally higher than Monday, but the bullish impulse is rapidly exhausted. The financial and technological sectors recovered some land on Tuesday, but sectors sensitive to tariffs such as construction materials and energy suppliers continue to languish on the bearish side.
The notable winners on Tuesday include JPMorgan Chase & Co (JPM), which rose 3% to $ 221 per share, followed by Boeing (BA) and NVIDIA (NVDA), which both rose around 2.7% to $ 143 and $ 100 per share, respectively. On the low side, Merck & Co (MRK) and Nike (NKE) fell around 2.3%, with Merck & co falling below $ 80 per share and Nike falling to $ 54 per share.
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Dow Jones price forecast
The Dow Jones industrial average seems to have found a technical floor at the level of 37,000, but the main stock market index is not yet out of danger. The Djia offers are still negotiated well below the historical maximums just above 45,000, with the Dow Jones falling more than 15% from the peak.
A recovery game can be on its way if the upward impulse can keep the wheels on the road. However, there are rigid technical price ceilings at stake at the last minimum below 41,000 and the 200 -day exponential mobile (EMA) average about 42,000.
Dow Jones daily graphics
Dow Jones Faqs
The Dow Jones Industrial Avenge, one of the oldest stock market indexes in the world, consists of the 30 most negotiated values ​​in the United States. The index is weighted by the price instead of capitalization. It is calculated by adding the prices of the values ​​that compose it and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, also founder of the Wall Street Journal. In recent years it has been criticized for not being sufficiently representative, since it only follows 30 companies, unlike broader rates such as S&P 500.
There are many factors that promote the Dow Jones Industrial Average (DJIA) index. The main one is the added performance of the companies that compose it, revealed in the quarterly reports of business benefits. The American and world macroeconomic data also contribute, since they influence investor confidence. The level of interest rates, set by the Federal Reserve (FED), also influences the DJia, since it affects the cost of credit, on which many companies depend largely. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Dow’s theory is a method to identify the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Avenge (DJIA) and the Dow Jones Transportation Average (DJTA) and just follow the trends in which both move in the same direction. The volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. Dow’s theory raises three phases of the trend: accumulation, when intelligent money begins to buy or sell; Public participation, when the general public joins the trend; and distribution, when intelligent money abandons the trend.
There are several ways to operate with the DJ. One of them is to use ETF that allow investors to negotiate the DJ as a single value, instead of having to buy shares of the 30 companies that compose it. An outstanding example is the SPDR Dow Jones Industrial Avenge ETF (day). Future contracts on the DJ allow the specular operators about the future value of the index and the options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Investment funds allow investors to buy a part of a diversified portfolio of DJ values, which provides exposure to global index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
