- The Dow Jones shot on Tuesday, reaching maximums of several months.
- The Dow is receiving an impulse of a reversal in technological actions.
- Budget observers remain cautious about the details of the expensive draft Trump’s financing law.
He Dow Jones Industrial Average (Djia) He rose to its highest levels in about five months on Tuesday, exceeding 44,500 for the first time since the beginning of February. Variable rental markets in general were mixed, with falls in technological actions keeping other important rates under control. Health actions lead the advance in Dow Jones, while technological giants such as NVIDIA (NVDA) and Tesla (Tsla) They fight under the weight of their unique battles.
The Trump administration is slowly moving towards the approval of its “great and beautiful budget law” after weeks of political struggles on different sections of the rapid changing draft Government’s expenses. However, one thing is safe for investors: Trump’s expensive budget will add billions of debt dollars to the already heavy federal deficit over the next few years.
Rising health, downward technological actions
The actions of the health sector are taking advantage of a bonanza as investors move away from technological giants as the week progresses. Continuous uncertainty about commerce and tariffs, political struggle and the sale of actions by Insiders are beginning to weigh both the Nvidia hardware giant and on the manufacturer of electric vehicles Tesla.
The CEO of Tesla, Elon Musk, who until recently was the trusted man of President Trump responsible for firing federal workers and entire departments without supervision of the Congress, has left Trump’s intimate circle. Musk has intensified his antagonism towards Trump’s budget, and is threatening to finance the opponents of the Republicans who support the bill.
Nvidia is struggling to continue delivering a three -digit income growth that has become the new basic expectation for technological investors. The vertiginous fervor for the shares of Nvidia, which have risen almost $ 1,400% from a minimum of 10.81 in October 2022 and reached a maximum of $ 158,83 per share in June, could be seeing a flattening as the Trump administration continues to use US technological access as a currency in commercial negotiations with China. Also in the radar of Nvidia investors there is a growing list of Shareholders Insiders who have been slowly releasing their actions this yeareven When shares prices They reach Meteoric maximums. Nvidia insiders have released more than one billion dollars In Nvidia actions in the last year, which has led some NVDA traders to wonder if the peak in the madness of the AI ​​is already discounted.
US data improve, but the commercial load persists
The figures of the purchasing managers (PMI) index of the US ISM manufacturing for June were stronger than expected on Tuesday, rising to 49.0 from 48.5 last month. Despite the improvement, the added feeling of investors remains trapped in contraction territory, since business operators continue to be concerned about growth prospects against tumultuous commercial and tariff conditions.
Dow Jones price forecast
The Dow Jones rose around a percentage point on Tuesday, exceeding 44,500 for the first time in several months. The main variable income index is now on the way to trying to a new historical maximum above 45,000, but bidders will have to deal first with overcompra conditions and a possible relief setback. The technical oscillators are deeply in overcompra territory, and intra -driving offers have reached their greatest differential with respect to the 50 -day exponential mobile average (EMA) since the late 2024, with the medium -term mobile average rising to 42,380.
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.
