- Dow Jones has won more than 660 points during the US session.
- Despite the profits, the Dow remains below the maximums last week above 45,000.
- A temporary exemption from tariffs to Mexico promoted feeling, but now EU tariffs are coming.
The Dow Jones Industrial Average (DJIA) is caught in a sway on Monday, falling below the level of 44,000 in the night session before recovering lost ground after the headlines indicated that US tariffs could be delayed Up to a month while the two countries solve their differences. However, new threats of tariffs on Europe further complicate the feeling of investors at the beginning of the negotiation week.
The president of the United States Atlanta Federal Reserve Bank (USA), Raphael Bostic, said that he and the rest of the Federal Open Market Committee (FOMC) are willing to wait even more to adjust interest rates . Tariffs are becoming a global commercial war between the US and most of its commercial allies, which weighs a lot about stability and inflation perspectives.
President of the United States Trump: I like the idea of ​​tariffs in most countries
Mexico potentially obtained a one -month delay in US tariffs, but the details are still confused and depend on how negotiations between both parties evolve. Canada, China and now the European Union are still in the list of countries that President Trump will punish charging his own citizens excessive rates for buying their products.
The purchasing managers index (PMI) of the US ISM a background before geopolitical agitation and the holders of the commercial war. It is likely that this is the last time that the PMIs have constant bullish impressions for a while, since the commercial taxes that the US is imposing themselves enter into force and affect economic activity.
Dow Jones News
Despite a strong reduction of the Dow Jones industrial average during the weekend, the main table of shares remains surprisingly stable in the aggregate, with approximately half of the green index on Monday. Apple (AAPL) and NVIDIA (NVDA) are the largest losers in the Dow, falling 3.4% and 2.8% respectively. Apple backed over $ 228 per share, with Nvidia falling at a price of $ 117 per share. Both megacompañas are greatly exposed to commercial tariffs, with the technological sector depending largely on cross -border trade to manufacture and assemble their products.
Dow Jones price forecast
The Dow Jones industrial average is struggling to establish itself at the level of 44,500, caught in a sway while the actions are staggered. The Dow began the negotiation week below the level of 44,000, but the feeling of investors is capturing some offers with the headline holders of tariff on the low side of the historical maximums above 45,000.
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.
