- The Dow Jones remained in 40,000 on Friday after a brief fall for new concerns about tariffs.
- The US data were weak in general, with the feeling of the consumer collapsing and the inflation of the PPI decreasing.
- The current commercial tensions will continue to weigh on the markets while China and the USA face.
The Dow Jones industrial average (DJIA) received a late offer on Friday, going back to the 40,000 area after an early fall due to the increase in tariffs between the US and China. China has increased tariffs on US imports to 125% while the country continues to retal against tariffs fired imposed on Chinese products imported to the US, which have increased to 145%.
Despite three -digit tariffs in both directions, White House staff is still sharp in which President Trump remains optimistic about a commercial agreement between the US and China will be reached, which helps strengthen the feeling of investors. The Dow Jones won almost 600 points on Friday, putting the main shares index at 1,800 points up for the week. The Djia still remains significantly below the historical maximums, but the actions in general regained ground this week after the Trump administration once again moved away from its own “reciprocal” unequal tariffs.
The US Price Price Index (IPP) of the USA (IPP) was moderated even faster than expected in March, with the underlying IPP falling to 3.3% year -on -year. However, inflationary pressures continue to cook at the bottom while markets expect to see how quickly the repercussions of tariffs will directly affect the US economy.
The results of the consumer’s feeling survey of the University of Michigan (UOM) showed that broad -based tariff tensions are eroding the economic perspective at the consumer level and inflation expectations. The UOM consumer’s feeling index fell to a minimum of several years of 50.8, and the consumer expectations index decreased to a historical minimum of 47.2 as more consumers expect a recession in next year.
The 1 -year inflation expectations of the consumer shot at 6.7% from 5.0%, and the 5 -year inflation expectations of the consumer also accelerated to 4.4% from 4.1%. Consumers are becoming more restless in the face of the proliferation of tariffs, and inflation expectations run the risk of disagreeing with the import prices ready to increase in general.
Dow Jones Price forecast
The Dow Jones industrial average received another offer on Friday, just enough to boost Dow Jones above the 40,000 zone and close an incredibly volatile week. The DJA reached minimum of 16 months about 36,600 before firing back to the high side in geopolitical headlines.
The price action is still trapped on the bearish side of the 200 -day exponential mobile average (EMA) in 41,875, but the bullish impulse is on its way to continuing to raise offers. A long -term technical inflection point is located in the 41,000 area, near the minimum oscillation of mid -March.
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.
