- The Dow Jones remained at short -term maximum on Wednesday, but the risks are growing.
- President Trump announced a commercial agreement with Vietnam, American importers will assume the cost.
- ADP employment data came well below expectations, reviving market fears on a weakened American economy.
He Dow Jones Industrial Average (Djia) He tried the side under Wednesday, backing on the upward inclination of the beginning of the week after ADP’s change figures were well below expected. The Trump administration has announced a commercial agreement with Vietnam, with US importers ready to support the burden of two -digit tariffs on all Vietnamese goods that enter the US.
President Donald Trump announced that the US had reached some kind of commercial agreement with Vietnam. According to Trump, Vietnam would be subject to a 20% tariff on all goods for the US, with a 40% tariff on re -export, while Vietnam would not collect tariffs at all about US exports to the country. The US exports to Vietnam totaled $ 13,100 million in 2024. Donald Trump insisted that Vietnam specifically pay the import tax, without pointing out that the import taxes of the US are charged in the port of entry to the US company that orders the goods.
ADP employment change figures in the USA. Latest Estimates of Net Employment Profit of the Office of Labor Statistics (BLS) scheduled for Thursday of this week. The aggregate forecasts expect NFP Net Employment Profit to increase in 110,000 in June, a healthy number but still slightly lower than May 139,000.
Dow Jones price forecast
The Dow Jones still remains in Alcista territory about 44,500, but the intradic impulse has slowed dramatically during the market session in the middle of the week. The Dow remains firmly anchored on the high side, quoting well at the 200 -day exponential mobile (EMA) average about 42,200; However, technical oscillators remain deeply buried in overcompra territory, warning of a downward correction on the horizon to relieve some of the bullish steam accumulated in the actions.
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.
