- The Dow Jones fell on Wednesday, losing 800 points at its lowest point and sliding below 42,000.
- Investors have changed concerns about the US federal budget that will send the highest US deficits, no lower.
- The market concerns that the Trump administration’s personalized budget will do nothing to solve the US inflation or debt problems sent the yield bonds on the rise, exerting down pressure on the variable rental markets.
The industrial average Dow Jones (DJIA) retreated on Wednesday, falling 800 and testing below 42,000 after the demand for US Treasury bonds decreased. Financial markets are showing decreasing interest and confidence in US debt financing To a brief fall.
The US government is approaching the “great and beautiful budget” of President Donald Trump that will add almost four billion dollars to the US deficit in the next decade. The budget that increases the deficit comes less than a week after Moody’s degraded the sovereign debt of the US, citing prolonged failures of the US government to stop government spending or increase fiscal income sufficiently.
A rate cut, a rate cut, my kingdom for a rate cut!
The hopes of investors for another rate cut of the Federal Reserve (FED) continue to be postponed this year. According to those responsible for the Fed, the imminent threat that US tariffs could rekindle inflation and hinder US economic growth is limiting its ability to adjust policy rates while waiting for clear data. The Trump administration is directed towards the end of its own period of suspension of “reciprocal tariffs”, and the evidence of signed trade agreements remains practically non -existent. With the future of the US commercial policy, clouding the waters, the fees operators are now divided on whether the Fed will carry out its first cutting -to -home cut in September in September or October.
Read more news about actions: The US stock market slides despite the fact that Republicans approach important tax cuts
Dow Jones price forecast
The foundations have permeated the graphic role, seizing the market dynamics as investors react to the owners on federal trade and budgets. The Dow Jones industrial average continues to quote over the 200 -day exponential mobile average (EMA) about 41,570, at least for now. The bullish price action continues to be hindered, and buyers have so far fought to carry the main variable income index to return to the 43,000 area.
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.
