- The Dow Jones backed another 100 points on Thursday.
- Actions face greater downward pressure as US tariffs affect cars manufacturing.
- Financial agencies are intensifying their warnings about the risks to the US economy.
The industrial average Dow Jones (DJIA) went down the second consecutive day on Thursday, falling another 100 points to lower a quarter of one percent. The main actions index is testing below 42,400 while investors deal with a new round of tariff threats of the Trump administration.
The president of the United States (USA), Donald Trump, has scheduled a 25% tariff that will be imposed to all vehicles imported to the US, which will begin on April 2 together with a broad package of “reciprocal” tariffs in general. Standard & Poors Global (Global S&P), Fitch Ratings, Moody’s and the Congress Budget Office (CBO) took the opportunity to highlight the risk clouds that begin to accumulate on the US economy while the Trump administration pursues a commercial confrontation of us against all with all US business partners at the same time.
The figures of the US Gross Domestic Product (GDP) for the fourth quarter of 2024 were slightly higher than expected, with the US economy growing 2.4% in annualized terms, slightly exceeding the medium market forecasts of the market of 2.3%. However, any celebration of the US growth was quickly hindered by the Moody’s qualification agency, which followed economic warnings earlier this week with a new warning that the highest tariffs and tax cuts will drastically increase government deficits. According to Moody’s, the Financial Agency is approaching to lower the quality of the US debt, a movement that would probably cause an increase in treasure yields, making the US debt even more expensive.
S&P Global warned that political uncertainty in the US will hinder global growth, as well as economic perspectives in general. Fitch Ratings noted that US tariffs, if they are implemented as they are, will have a devastating impact on smaller economies, including Brazil, India and Vietnam, which will make it difficult, and will not facilitate, that emerging market economies (EM) become net buyers of US goods and services as President Trump wants.
The CBO cut its own US growth forecasts on Thursday, moving its GDP prognosis by 2025 to only 1.9%, an annual growth figure that the government office does not expect the US to exceed the predictable future, until 2035, where they foresee that the growth of the US will slow down even more. The CBO also expects the inflation rate to be slowed within the US economy to work practically at a high level in 2025. The CBO, in line with the recent forecasts of the Federal Reserve (Fed), now expects the current rhythm of inflation to remain stubbornly high until some time in 2027.
The CBO also expects the US budget deficit to shoot 7.3% of GDP in 2025 unless federal agencies make changes in their current plans. According to CBO calculations, the US debt service, including interest payments, is expected to occupy 5.4% of the US annual GDP by 2055 unless changes are made.
Actions news
Shares of shares face the downward pressure on Thursday, however, the losses remain limited for vehicle manufacturers exposed to planned Trump administration tariffs on all vehicles produced abroad. According to approximate estimates, almost 40% of each vehicle on US roads is manufactured or produced by foreign companies. As investors cling to their positions and expect positive signals soon. The Dow Jones has dropped approximately a quarter of one percent, with the S&P 500 and the Nasdaq composite quoting both within a tenth of one percent from the opening offers of the day.
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Dow Jones Price forecast
The Dow Jones continues to test the 200 -day exponential mobile average (EMA) again about 42,000, since the long -term uprising impulse fades into the graphics. The offers action remains limited by the 50 -day EMA just below the price level of 43,000, and the recent recovery of Dow Jones seems to have finished and is aimed at setting its first lowest pattern of maximum higher in almost two years.
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.
