- The Dow Jones tested lower levels on Friday after Donald Trump pointed to China once again.
- Variable rental markets remain reluctant after this week’s legal obstacle for Trump tariffs.
- The US PCE inflation came as expected, although with upward data rise.
The industrial average Dow Jones (DJIA) stumbled on Friday while investors continue to be beaten by new commercial concerns from the White House. The president of the United States (USA), Donald Trump, has focused again on China, stating that his preliminary trade agreements have been “raped.” Despite a general cooling of the key inflation figures of the US Personal Consumption Expenditure Index (PCE). In April, the previous data saw an upward review, and the impacts of tariffs on prices are still coming.
Trump renews the rhetoric of the commercial war directed directly to China
President Trump’s approach on commercial policy continues to deepen the division into the markets, dividing the feeling of investors in two. Through a publication on social networks, Donald Trump proclaimed that China has “violated” the preliminary trade agreements that the two commercial giants agreed in recent weeks. However, the exact details of what terms have been raped remain unclear. This further wears the nerves of investors, who are already at the limit after federal judges ruled this week that the Trump administration violated its limits when using national security laws to impose broad tariffs.
Trump tariffs can remain in force while the appeal process begins. Unfortunately, this moves away the hopes of the market of clarity about the US trade while the White House seeks to reverse the failure. Trump’s collaborators have declared that they will also look for other legal channels to advance their commercial agenda, presumably with the aim of continuing to completely avoid Congress.
According to sources within the Administration, the Trump Administration is writing orders to impose new restrictions aimed at limiting Chinese access to the US technology industry. The technological rally promoted by AI, and the giants of the manufacture of chips that have benefited from it, will probably not respond favorably to the president’s attempts to exclude them from one of the most hungry markets of one of the most hungry markets The world.
Technological rally promoted by AI faces winds against combative commercial position
During the Nvidia (NVDA) earning calls of this week, the CFO of Nvidia, Colette Cress, said that the technological giant expects to lose approximately 8,000 million dollars in income due to the existing technological restrictions introduced by the Trump administration. Nvidia also hopes to remain completely excluded from the Chinese market of AI accelerators, which is expected to grow at 50,000 million dollars in the coming years. The CEO of Nvidia, Jensen Huang, suggested that the Trump administration approach to technological trade with China is based on the incorrect assumption that China cannot produce chips and grade processors:
The question is not if China will have ia, already has it. The question is whether one of the world’s largest markets will work on American platforms. USA has based its policy on the assumption that China cannot do AI chips. That assumption … is clearly incorrect.
Read more news about actions: Technological actions fall while Trump’s irritation with China leads to a setback on Friday
The US PCE inflation coincided with the medium market forecasts in April, with an annualized PCE pricing index inflation that stood at 2.5% year -on -year. However, the figure of the March PCE was reviewed to 2.7%, limiting any celebration of investors while inflation data continues to float stubbornly above the target range of 2% of the Federal Reserve (Fed).
Dow Jones price forecast
The Dow Jones industrial average continues in the mud near the 42,000 zone, since the main actions index threatens to enter a period of consolidation. The price action remains backed just above the 200 -day exponential mobile average (EMA) about 41,590, but the bullish potential is being exhausted in the intradic graphics. The Dow Jones has fallen to negative territory by 2025, and remains approximately 6.5% below the historical maximums recorded at the end of last year.
Dow Jones 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.
