- The Dow Jones fell again to the weekly red zone on Friday.
- President Trump has intensified the new tariff threats, pointing to Canadian goods with new import rates.
- The feeling of investors remains limited in a constant commercial policy environment.
The Dow Jones industrial average (DJIA) interrupted a two -day recovery on Friday, testing again below the level of 44,400 while the shares deal with a new reality where commercial tariffs exist in a quantum state, prone to appear and disappear in an instant. President Donald Trump has been occupied this week, presenting a series of new tariff threats against a multitude of countries after suspending the “reciprocal” tariffs again that were announced in April.
President Trump is imposing additional two -digit tariffs on the main commercial allies of the US, including South Korea, Japan and now Canada, in addition to threatening a 50% tariff over all copper imports to the US this Scheduled to enter into force on August 1 unless countries successfully negotiate acceptable trade agreements with the Trump administration, the same day that “reciprocal” tariffs announced in early April are scheduled to enter into force. The ads of tariffs on the day of liberation were quickly suspended for 90 days, which then extended until August 1 in the countdown to the deadline of July 9.
Variable rental markets ended up down despite having tried new maximums in mid -week. Investors are preparing for the start of the second quarter profit season, as well as for a new round of US consumer price inflation figures (CPI) that will be published by the Monday. IPC inflation data is expected to generally increase in June, which will make it difficult for the Federal Reserve (FED) to enter a new cycle of feat cuts, to the displeasure of President Trump and some responsible for the Fed who have been leaning towards cut cuts in summer in summer in an effort to become more attractive as possible candidates to replace the president of the Fed, Jerome Powell, when the mandate of the chief of the Fed next year.
Dow Jones price forecast
The Dow Jones remains limited below the important price level of 45,000, and a short -term pivot towards a new bullish impulse crashed into geopolitical rocks this week, maintaining the limited intradic offers in the 44,400 region. Despite losing some land this week, the Dow remains firmly buried in upward territory, quoting well above the 200 -day exponential mobile average (EMA) about 42,330.
Dow Jones daily graphics
Dow Jones – Frequently Questions
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.
