- The Dow Jones remained stable on Friday after a holiday closure at the end of the week.
- The main stock market indices are waiting for key economic data from the US next week.
- Fed feature cuts expectations are returning to the forefront.
The industrial average Dow Jones (DJIA) remained stable on Friday, clinging just above the 42,000 area. American actions are increasingly pivoting towards the expectations of features of the Federal Reserve (FED), and a series of US key data publications next week will attract greater attention to investors.
Soon: PMIS, Fed statements and PCE inflation
The next batch of figures on the purchase managers index (PMI) of Global S&P will begin next Monday. The aggregate figures of business feeling are expected to soften slightly in the services and manufacturing components.
The president of the Fed, Jerome Powell, will also begin his two -day testimony before the Financial Committees of Congress and the Senate on Tuesday. There will be a significant pressure on the Fed head to explain why the Fed is so concerned about the uncertainty of politics, but not enough to deliver rate cuts that could relieve some of the US debt service costs.
The May iteration of the Fed preferred inflation indicator, the Personal Consumption Expenditure Price Index (PCE), will also be published next week, scheduled for Friday. Those responsible for the policy and policy observers are preparing for possible economic repercussions of Trump administration’s tariff policies, and the window after tariffs on trade, manufacturing and consumption is expanding as the main data sets begin to include subsequent dates of self -domening tariffs of “release day of the President Trump.
Read more news about actions: American actions open up while the governor of the Fed asks feat cuts on Triple Witch Day
Dow Jones price forecast
The Dow Jones industrial average is still trapped in a short -term consolidation phase. The main stock market index is moving in the graph just above the 42,000 zone, but intra -ease prices are still finding technical support in the 200 -day exponential media (EMA) about 41,770.
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.
