- The Dow Jones rose 0.7% on Monday while other indexes fought.
- The self -imposed term of April 2 by the Trump administration for tariffs is coming.
- A quiet beginning of the week gives way to fireworks with tariffs and NFP on the horizon.
The industrial average Dow Jones (DJIA) bounced 300 points on Monday, recovering land lost in the fall of the market of shares last Friday. The president of the United States (USA), Donald Trump, is ready to unleash his tariff packages, threatened but still ambiguous, on April 2, which affects the feeling of investors throughout the market.
The Dow Jones rose seven tenths of one percent, jumping again above the level of 41,700 to begin the new negotiation week. However, the rest of the main stock market indices continued to fight. The Standard & Poor’s 500 gave up a fifth of one percent to 5,570, while the Nasdaq Composite, with a strong technological approach, backed 200 points to lose a complete point.
The Trump administration is quickly directed towards its self -imposed term to initiate a wide range of tariff USA and broad “reciprocal” tariffs on any country that has its own import restrictions on US products. Additional tariffs on the European Union (EU) and Canada are expected, as well as any country that buys Venezuelan crude oil.
The US non -agricultural payrolls (NFP) are coming later this week, scheduled to be published on Friday. This week’s NFPs could attract significant attention to investors while the US economy faces signs of economic slowdown, and will also serve as a key labor indicator and after the tariffs of the US administration are implemented.
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Dow Jones price forecast
The recovery of Dow Jones on Monday has put an end to a three -day run, braking the short -term bearish flows. However, things are not exactly optimistic on the horizon: the DJ continues to operate below the 200 -day exponential mobile average (EMA) about 42,080, and the main shares index is still 3% below the last maximum of 42,800.
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.
