- Dow Jones collapsed on Monday, falling below 44,500.
- President Trump has changed posture about tariffs once again, postponing self -imposed deadlines.
- Despite doubts about the trade period of July 9, the Trump administration returns with new tariff threats.
The Dow Jones Industrial Average (DJIA) fell on Monday, retreating below key technical levels. The Trump Administration added new tariff threats against the US key business partners to cover up another tariff delay previously taxed, causing a new wave of risk aversion among investors who are getting tired of the roller mountain of tariffs.
The increase in tariffs deepens despite another delay
The term of July 9 for the reciprocal tariffs of President Trump, originally announced and delayed in early April, has now postponed for early August while the Trump administration struggles to ensure advantageous commercial concessions of the rest of the planet. Outside some preliminary agreements with China and the United Kingdom, and a small commercial agreement with Vietnam, very little progress has been made in the Trump team’s mandate to obtain trade agreements from 90 countries in 90 days.
Donald Trump announced the delivery of commercial demand letters to countries such as South Korea and Japan, warning that he intends to impose an additional 25% tariff on all US imports from both countries from August 1 if they do not cooperate in commercial negotiations. The US Secretary of Commerce, Howard Lutnick, also announced on Sunday that the Trump administration would have been occupied, warning that several commercial ads would be made in the next few days. The Secretary of Commerce Lutnick chose not to reveal the names of any specific country with which the US is close to signing trade agreements, a pattern that has been repeated weekly since April.
Read more news about actions: US actions open down while Trump threatens additional brics nations tariffs
Dow Jones price forecast
The Dow Jones setback on Monday has dragged the main stock market index below 44,500 after an effort of several weeks to exceed the key technical level. The Dow Jones still remains on the top side of the 44,000 area, and the price action remains firmly inclined to the upward side despite a short -term setback.
The Dow continues to rise by 21% from the minimum after the April tariffs about 36,600, and the next technical objective are new historical maximums above 45,000. On the low side, short -term technical support is valued in the 50 -day exponential mobile average (EMA) located just below 43,000.
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.
