- The Dow Jones went up on Thursday, promoted by a general improvement in the actions.
- Investors ignored a negative impression of GDP, focusing on medium -term factors that are coming.
- The US PCE inflation figures will be published on Friday will be the last data obstacle this week.
The Dow Jones industrial average (DJIA) rose to its highest figure in 16 weeks on Thursday, exceeding 43,300 for the first time since the end of February. A general improvement in the tides of the sharing market raised all ships, and investors are attentive to key factors that loom the medium -term markets.
The Trump administration is struggling to advance its “great and beautiful budget law” through the US government. Several obstacles have emerged along the way both at the Congress and the Senate, and the Trump team is running out of time to approve the budget that increases the deficit before the holidays of the Independence Day of July 4.
Budgets, tariffs, inflation
The temporal suspension of the “reciprocal tariffs” announced by President Trump in April is scheduled to end on July 9, and the arbitrary deadline is coming with very little clear progress in any important commercial agreement. The changing approach of Donald Trump to announce and then cancel or delay tariffs has generated a challenging position in the markets, with the investors in general, that each new iteration of tariff threats of the White House will result in the Trump administration finding a reason to cancel or delay once more. However, the next deadline for reciprocal tariffs could see some tensions in the market as investors prepare for the next movements of the Trump team.
The White House Press Secretary, Karoline Leavitt, raised the idea that Trump again delayed her reciprocal tariffs in the prelude to the deadline of July 9. However, more conversations about delays could still make the markets anxious as the US economy continues to deal with an uncertain future in commercial policy.
Inflation metrics will assume an increasingly significant role in the coming weeks and months, since both those responsible for the policy and market participants seek inflationary signals derived from the tariff policies of President Trump. The inflation of the US Personal Consumption Expenditure Index (PCE) for May will be published on Friday. Annualized underlying PCE inflation is expected to increase 2.6% year -on -year, with monthly figures that are expected to be stable at 0.1% monthly.
Dow Jones price forecast
The Dow Jones industrial average continues its constant ascent after having captured a technical rebound from the 200 -day exponential (EMA) mobile average last week, uploading almost 4% from the 41,860 region. The Dow Jones has successfully recovered all its losses suffered after the reciprocal tariff ads in April, but is still on the low side of the historical maximums recorded above the area of ​​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.
