- The Dow Jones won early on Wednesday before falling back to 44,000.
- The markets are on high alert after President Trump took another step towards the end anticipated Powell’s mandate.
- Despite the lack of legal precedents, the Trump administration is full of “first times” of the White House.
The Dow Jones industrial average (DJIA) rose early Wednesday after the inflation of the United States Production Price Index (IPP) (USA) remained on the cooler side, which reinforced market confidence in a federal reserve rate cut (FED) sooner rather than later. However, the US president, Donald Trump, was quick to cut the feast of the feeling when pointing out to the US government who is looking for a way to finish the mandate of the president of the Fed, Jerome Powell, as chief of the Fed in advance.
Trump hesses in his attacks on Powell, but the intention remains
Variable rental markets recovered some land after President Trump changed to a warm statement that “he is not planning to do anything” About the president of the Fed, Powell, at this time, howeverexhibiting a letter of dismissal specifically for the chief of the Fed in front of Congress on Wednesday sent a clear sign that Trump is looking for a way to end the Powell position as head of the Fed. The president’s office does not have a legal framework (or even jurisdiction) to fire Fed officials; However, Donald Trump’s actions serve as a signal for Congress Republicans to join and allow this to happen: President Trump has made legal and ethical obstacles a habit for his administration.
The US IPP inflation arrived well below expectations on Wednesday, reinforcing the general feeling of the market as the operators bow again towards the hopes of feat cuts. The underlying IPP of the US of June stood at 2.6% year -on -year, well below the previous printing of 3.0%, which generated new hopess that tariff impacts could remain moderate.
Business inflation in cooling does not mean that consumers save money
However, the hopes of a rate cut have not yet leaked completely in the books of rates observers. According to the CME Fedwatch tool, rates operators are still valuing about 40% probability of maintaining fees in September, and the probabilities of an additional cut before the end of the year remain uncertain.
Read more news about actions: US actions oscillate wildly after Trump hesitates about fire Powell from the Fed
Dow Jones price forecast
Despite the firm resistance of the buyers, the Dow Jones continues to test lower land after having found a technical roof just below 45,000 earlier this month. The Dow is now struggling with the 44,000 area, and the main actions index could see new falls if the line is not maintained.
The bearish impulse could still have some space to advance as technical oscillators continue to descend from overcompra conditions, and the closest price support is incorporated into the 50 -day exponential mobile average (EMA) about 43,095.
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.
