- The Dow Jones remains stagnant about 43,000, but investor optimism remains elevated.
- Commercial conversations between the US and China are close to concluding in London.
- The US IPC inflation data and consumer’s feeling figures are of great relevance later this week.
The industrial average Dow Jones (DJIA) continues to quote at the upper end of the recent congestion on Tuesday. The impulse of the market remains limited in general, since the operators prepare for a double blow of commercial holders and key inflation data of the consumer price index (CPI) after the tariffs that will be published on Wednesday.
The Trump administration delegates are in the process of completing commercial conversations with Chinese officials in London. The commercial negotiations are close to ending, with the latest loose ends of this meeting that is expected to be resolved after the closure of the market on Tuesday. Any important concession of any of the parties still does not announce or has not been achieved, and investors may be growing apprehensive due to the lack of movement of both parties while commercial tensions continue to boil at the policy level.
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The first batch of IPC inflation data, which will include the initial price impacts of “reciprocal” global tariffs of the Trump administration, is expected to reach the markets on Wednesday. Medium market forecasts anticipate an increase in general and underlying CPI figures. It is expected that inflation of the general annualized CPI of May rises to 2.5% year -on -year from 2.3%, while the underlying IPC inflation is expected to increase 2.9% from 2.8%.
Business inflation of the production price index (IPP) will be published on Thursday, and is expected to remain stable in 3.1% year -on -year. The last consumer’s feeling index of the University of Michigan (UOM) will be published on Friday, and investors again expect an increase in the general feeling of the consumer.
Dow Jones price forecast
The Dow Jones industrial average (DJIA) is constantly approaching the upper limit of its recent consolidation, approaching a short -term technical roof at the significant level of 43,000. Currently, price movements are strong, remaining above the 200 -day exponential mobile average (EMA) around 41,650. The bullish impulse could experience a temporary pause as technical oscillators indicate overcompra conditions.
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.
