- The Dow Jones uploaded on Monday, touching the 42,800 region.
- Moody’s reduced US debt at the end of last week, causing a brief hesitation in the feeling of investors.
- The Fed speakers are working double day before the US PMI data that will be published later this week.
The Dow Jones Industrial Average (DJIA) gained ground to start the new negotiation week, playing 42,800 for the first time in eight weeks, while the markets continue to pushed the Variable Rent markets back to the upper part after the fall of shares promoted by tariffs this year.
The Moody’s qualification agency stripped the United States (USA) of its last AAA rating in its treasure bonds last Friday, citing the growing indebtedness and governmental deficits that the successive presidential administrations refuse or are unable to control. The qualification agencies began to strip AAA status of the US Treasury Bonds in 2013, and it is the first time that Moody’s has reduced the US since 1913.
The feeling of investors staggered the headlines, but quickly recovered and dismissed the coup to the US credit solvency: even with the quality of investment in decline, there are practically no alternatives to treasure quality assets, especially when considering the size of the US debt market, which exceeds any other potential asset.
Even so, not everything is perfect in treasury markets: yields at 30 years exceed 5% on Monday, and yields at 10 years were negotiated above 4.5%. The last time the yields at 10 years rose so high, so fast, the Trump administration was forced to move away and effectively cancel its “reciprocal tariff” plans in April.
The Fed is not in a hurry to meet the markets in the middle on rates cuts
The speakers of the Federal Reserve (FED) have started the week with force In an attempt to moderate market expectations on feat cuts. All those responsible for the FED have been gently but firmly remembered to investors that tariff and commercial policies still exist in the US make them almost impossible to anticipate the domestic economy and adjust the policy rates as a result. The Fed is firmly rooted in a waiting and observation mode, regardless of how much features the future cuts value. Although rates operators still maintain that a new cycle of feat cuts will begin in 2025, when those cuts will continue to advance more in the calendar. According to the CME Fedwatch tool, rates markets are now valuing a first quarter -quarter rate cut in September, far behind the June expectations that were valued less than a month ago.
The key to the economic data that will be published this week will be the figures of the Purchase Management Index (PMI) of Global S&P for May. According to medium market forecasts, it is expected that both manufacturing components and PMI report services will decrease slightly as tariffs affect business spending activity.
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Dow Jones price forecast
The Dow Jones industrial average continues its way back in the graphics. The main stock market index has closed up for four consecutive weeks and is already on its way to a fifth upward week after a decided start on Monday. The Dow Jones is pushing even more above the exponential (EMA) mobile average of 200 days about 41,500, and has risen almost 17% from the fall due to April tariffs that sent the DJS to 36,600.
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.
