- The Dow Jones rose slightly on Friday, reaching new weekly maximums.
- Variable rental markets ignored a worse figure than expected of the UOM consumer’s feeling index.
- Investors expect the Trump administration to provide more clarity about trade.
The Dow Jones industrial average (DJIA) reached new weekly maximums on Friday after investors ignored the second worst figure in the consumer’s feeling index of the University of Michigan (UOM) in history. The feeling of the market remains at a high level while the operators expect more clarity about the Trump administration trade and a continuous relief of the tariff policies of President Donald Trump.
The UOM consumer’s feeling index fell to 50.8 from 52.2 As consumers’ perspective on economic activity, income and employment continues to decrease. Investors were waiting for an increase in consumer’s feeling, but the average consumer apparently does not agree with Wall Street. Inflation expectations at 1 and 5 years also increased, reaching 7.3% and 4.6% respectively.
The feeling of the market is maintained at the high end, but dark clouds persist on trade
Although consumers tend to be terrible predicting their economic future, tariff concerns have been affecting consumers’ feelings about the economy. With inflation expectations, continuing to increase, this could pave the way for a “benefit -driven inflation”, or that companies take the opportunity to increase prices in the expectation of consumers that prices will rise. The US inflation data were much better than expected this week, helping to relieve market fears that unequal commercial policies of the United States could shatter the still strong position of the US economy. However, investors usually underestimate the time that it takes for government policies to be reflected in general data, and tariffs are probably not an exception.
According to estimates of the Fitch Ratings agency, the general effective Tariff rate of the US has reached 13% after the new Trump administration toy to use tariffs to try to control global trade. Before the generalized tariffs, the effective US tariff rate was 2.5%. The effective US tariff rate specifically remains above 30% even after the reversion of the deranged import taxes of 145% of President Trump.
The Trump administration has developed a pattern of threatening to changes in deeply harmful policies before reversing them, temporarily suspending them or canceling them completely at the last moment. Market perception in general anticipates a continuous reversal of Donald Trump’s political strategies; However, the upward spirits will probably remain warm until the Trump administration delivers some solid results and provides clarity about the many commercial agreements that White House staff insisted that they will be announced at any time during the last two months.
Dow Jones price forecast
The Dow Jones industrial average has finally managed to return to the 42,500 level for the first time since March. Commercial headlines sent to the US Variable markets to a free fall in the first quarter, taking Dow Jones to the 36,600 region. After weeks reducing losses, the Djia is finally back in positive territory by 2025.
The bullish impulse has strengthened Dow Jones above the 200 -day exponential mobile average (EMA) about 41,500, and the DJ has bounced 16.25% from the minimum to the maximum. The price action is directed towards a technical resistance area valued from the maximum of March at 42,800, while the 42,000 area is ready to start providing a technical floor.
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.
