- The Dow Jones lost 300 points after the US NFP figures did not meet expectations.
- The fears of inflation of US consumers increased, while their perspectives deteriorated.
- The president of the USA, Donald Trump, returns to put the tariffs on the table.
The Dow Jones Industrial Average (DJIA) suffered a new fall on Friday after non -agricultural payrolls (NFP) did not comply with market forecasts, and the consumer’s feeling index of the University of Michigan (UOM) showed a strong Fall in the general economic perspective of consumers. The president of the United States (USA), Donald Trump, also put his long -awaited commercial war on the table, hinting at what is to come with threats of reciprocal tariffs to countries that have their own tariffs on US goods .
The preliminary payrolls of the US NFPs were weaker than expected in January, adding a net of 143,000 new jobs during the month, even below the planned 170,000. However, not everything was bad news in the work front: the December NFP figure was reviewed significantly to 307,000, and the unemployment rate fell to 4.0% from 4.1%.
The UOM consumer’s feeling index for January contracted a new minimum of seven months of 67.8, since US consumers became more and more pessimistic about their economic perspective. The last score of the feeling index was 71.1. According to the complete results of the UOM survey, American consumers are also dealing with renewed fears of inflation, with 12 months inflation expectations that jumped to 4.3% compared to the last data of 3.3%. The higher inflation expectations are taking roots, with 5 -year inflation expectations also rising to 3.3% from 3.2%.
US president Donald Trump hit the markets with a new round of tariff threatsonly to keep investors and markets in suspense and remember everyone that their plan remains to address US debt problems with import rates to their own citizens. The president signed an executive order to start preparing minimis tariffs, or tiny, on China that are largely symbolic, but promised through social networks that it is preparing a broader package of reciprocal tariffs on “many countries.”
Dow Jones News
The feeling of the market was shook on Friday, oscillating in both directions before being shaken down by new commercial war holders. The majority of the Dow Jones values table has turned down, with small profits being eclipsed by strong Amazon losses (AMZN).
Amazon posted better profits and income than expected in the fourth quarterbut the Megacompañía also warned that there could be winds against the horizon. He reduced his future guide for the first quarter and sent investors running towards the hills. Amazon shares fell 3.5% on Friday, sinking at 230 $ per share.
Dow Jones price forecast
The Dow Jones has extended a second consecutive day of fall, losing 300 points and going back to the region of 44,400. The level of 44,000 is in view again, and the index has fallen more than 1.5% from another failed attempt to exceed the key level of 45,000. The immediate objective for a bassist correction is parked in the Exponential Mobile (EMA) average of 50 days about 43,730.
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.
