- The variable rental markets shot after the Fed remained firm in the 2025 fees cuts.
- Despite the growing risks and concerns, especially around tariffs, the Fed still sees hope of rates.
- The Dow climbed more than 500 points, while the S&P 500 added 90 points.
The Dow Jones industrial average (DJIA) gained ground on Wednesday, adding around 540 points on their peaks, with the shares going after the Federal Reserve (Fed) winks to the expectation of about two rate cuts during the rest of the year. Despite the growing winds against the clumsy policy of the Trump administration, those responsible for the Fed continue to rely on signs of still strong growth and the strength of the US labor market, even when growth forecasts receive another cut.
The Dow Jones exceeded the 42,000 zone and the standard and poor’s 500 (S&P 500) rose around 1.5% as the shares were inclined back to the upward side after the last decision of the Fed fees. The president of the Fed, Jerome Powell, said that the growth projections for 2025 have been significantly impeded by the political erratic political administration to announce commercial tariffs on social networks only and then retract. As a result, the Federal Open Market Committee (FOMC) reviewed its gross domestic prognosis (GDP) by the end of 2025 to 1.7%, a strong fall from the 2.1% estimate shared in December.
Powell de la Fed: we will not be in a hurry to move in the feat cuts
In addition, the medium -sized points suggests that the interest rate at the end of 2025 will remain at 3.9%, indicating little change from the last policy meeting. FOMC plans to start reducing its balance reduction from April. The rates markets continue to point out more than 50% probability of a cut of a quarter point in June, with most rates operators assigning a 65% probability of a cut of a quarter or greater quarter or greater on June 18.
In spite of the growing risks to the US economy for lagged growth metrics and the growing concerns that US tariff political erratic could trigger both new inflation as an economic recession simultaneously, the president of the Fed, Jerome Powell, declared Wednesday that the current economic perspective is still generally healthy, and the Fed is not hurried to Less two more rates cuts at the end of the year.
This policy perspective is aligned with the aggregate score of the speeches of those responsible for the FED, evaluated by the feeling index of the internal FXstreet Fed, which indicates that the Fed speakers have been vowels about the growing risks and concerns facing the US economy. Clear ones.
In other news news, Boeing rises again as the orders of 773 aircraft take off.
Dow Jones Price forecast
Despite Wednesday’s bullish impression, the Dow remains hindered by the 200 -day exponential mobile average (EMA) near the 42,000 key zone. The price action has recovered its stability after a short -term drop that saw the main stock market rates try correction territory, but the offers remain hopeful as technical barriers weigh.
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.
