- The Dow Jones remains about 44,400, although with a nervous tone.
- The Trump administration returns with a new round of tariff threats.
- Investors continue to bet that Donald Trump will find a reason to postpone tariffs again.
The Dow Jones Industrial Average (DJIA) floated near the 44,400 region on Monday, staying stable in a short -term consolidation zone while global markets are committed to a new round of tariff threats from President Donald Trump will be delayed, suspended, or trimmed once again.
New month, new tariff term
A new deadline for a wide range of tariffs has been arbitrarily set for August 1, after another delay of Trump’s “undelated” reciprocal tariffs that were announced in April. In addition to the reciprocal tariffs of the “Liberation Day” of the Trump Administration, Trump is now threatening with two -digit tariff increases about some of the closest commercial partners in the US, including South Korea, Japan, Canada, and Mexico.
Most countries have already agreed to continue commercial conversations with the Trump team, but progress is still slow. Despite an almost constant flow of promises that solid trade agreements are just around the corner, very little real progress has been achieved. China has agreed to establish new commercial terms in the future, and the United Kingdom and Vietnam remain the only two countries that have reached a commercial agreement, although the real details of trade agreements remain limited.
Commercial agreements are easy to do, but difficult to comply with
Both the US and Vietnam seem to be in a hurry to provide a real explanation of what the trade agreement will imply, apart from a 20% general tariff over all Vietnamese exports to the US. The tentative trade agreement also includes a 40% tariff on any merchandise that the US decides that it has been “transfined” through the Asian country.
As of Tuesday, the next Lot of key profits reports will begin to be published. The main banks, including JPMorgan Chase, will begin to reveal their latest quarterly gains reports. Also on this week’s agenda will be the last round of US inflation data, the US consumer price index (CPI) of the US until June will be accelerated as the first lot of tariff batch that Trump implemented successfully starts to have an effect in the US economy and leakes the main data sets in the coming months is expected.
The Fed is wrong about rates and excessive spending, says the Trump administration loaded with deficit
The gap between the Trump administration and the Federal Reserve (FED) continues to expand while Donald Trump attributes all his fiscal policy problems to the president of the Fed, Jerome Powell, who refuses to lower interest rates to the possible tariff inflation. Trump has intensified his almost daily personal attacks against the head of the Fed through publications in social networks and statements to the media, which Powell has largely ignored. Trump’s officials who helped write and approve the “Great Beautiful Budget Project” of Donald Trump, which is intended to add billion dollars of excessive government spending to the US deficit, are ready to begin investigating the expense of the Fed in a renewal and remodeling of the main building of the Fed in Washington, DC.
Dow Jones price forecast
The Dow Jones continues to move in a rough consolidation zone, bouncing around the midpoint between the levels of 45,000 and 44,000. A slow descent has emerged in intra -time frames, pushing the minimums of intra -re -return oscillation to medium prices. However, the general bunder impulse is still strong, and falls down will probably become purchase opportunities instead of signals to sell more.
1 hour dow jones 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.
