- The Dow Jones is steady on Friday, staying afloat near 44,500.
- Despite a quiet end to the week, stocks are primed for strong bullish closes.
- US PMI data was more mixed than expected, with little effect.
The Dow Jones Industrial Average (DJIA) remained in the mid-range on Friday, testing between 50 and 100 points on a slow trading day. The Dow Jones is closing out a week firmly bullish, with the index gaining about 2.3% since Monday’s opening bids. The DJIA has gained ground for the second week in a row, strongly hinting that the bull market has returned after a six-week pullback.
President Donald Trump fanned the flames of pro-equity sentiment this week by failing to institute the first-day tariffs he campaigned on. He also announced this week that he will “demand” lower interest rates from the Federal Reserve (Fed) and plans to request a drop in oil prices from Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC).
S&P Global Purchasing Managers’ Index (PMI) survey results for January were even more mixed than analysts anticipated. According to an ambiguous number of respondents, companies saw a better-than-expected improvement in manufacturing sector growth expectations. However, service companies are more discouraged about future business conditions than most anticipated.
The January manufacturing PMI rose to 50.1 from 49.4 the previous month, beating the forecast of 49.6. The services PMI for the same period fell to 52.8 from 56.8, well below the expected 56.5, but still remains in positive territory overall, meaning purchasing managers who responded to the survey don’t expect much growth in next month, but they also do not expect a complete contraction in business conditions.
Dow Jones News
Despite some steeper losses in key overweight stocks that dragged the Dow slightly lower on Friday, the index itself is roughly balanced, with about half of the stocks listed on the board still finding higher ground to close the market. negotiation week. Walt Disney Co (DIS) rose 1.8% to $113 per share, mainly on expectations that past performance is indicative of future results after the entertainment monolith returned 24% in 2024 to people who owned its actions. On the low side, Nvidia (NVDA) fell 2.5%, dropping to below $144 per share, as investors fear the company may be doomed now that its streak of seeing more than 100% annualized growth in the income may be over.
Dow Jones Price Forecast
The Dow Jones Industrial Average is once again touching all-time highs just above 45,000 set at the end of last November. The DJIA initially fell 7.4% top-to-bottom in a six-week pullback after posting the new record, but the wheels are back on the road as buyers continue to lean into risk appetite.
The Dow Jones is up 6.8% from the January low at 41,730, testing the 44,500 region after closing in the green in all but one of the last nine consecutive trading sessions. The immediate barrier to new all-time highs will be the main 45,000 zone, while a pullback to the 50-day EMA near 43,275 could hamper bullish momentum.
Dow Jones Daily Chart
Dow Jones FAQs
The Dow Jones Industrial Average, one of the world’s oldest stock indices, is made up of the 30 most traded securities in the United States. The index is weighted by price rather than capitalization. It is calculated by adding the prices of the securities that comprise 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 indices such as the S& P 500.
There are many factors that drive the Dow Jones Industrial Average (DJIA). The main one is the aggregate performance of its component companies, revealed in quarterly corporate earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
The Dow Theory is a method for identifying the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where they are both moving in the same direction. Volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. The Dow theory proposes three phases of the trend: accumulation, when the smart money begins to buy or sell; public participation, when the general public joins the trend; and distribution, when the smart money abandons the trend.
There are several ways to trade the DJIA. One of them is to use ETFs that allow investors to trade the DJIA as a single security, instead of having to buy shares of the 30 companies that comprise it. A prominent example is the SPDR Dow Jones Industrial Average ETF (DIA). Futures contracts on the DJIA allow traders to speculate on the future value of the index, and options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds allow investors to purchase a portion of a diversified portfolio of DJIA securities, providing exposure to the 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.