- The Dow Jones shot 7% on Wednesday after the Trump administration delayed its “reciprocal” unequal tariffs.
- A 10% flat tariff in all products is still in force, and China tariffs will follow 125%.
- The feeling of the market has completely changed direction, and betting bets are bite.
The Dow Jones industrial average (DJIA) shot on Wednesday, uploading more than 2,200 points and recovering the important price level of 40,000 after the Trump administration announced that once again it would move away from most of its recent tariff threats. According to social networks of US president Donald Trump, unequal “reciprocal” reciprocal “tariffs are being reduced to only 10% in general during the next 90 days
However, American tariffs on China are still in force and are scheduled to increase to 125% after China imposed a retaliation tariff of 84% over all imported goods from the US. UU. In a movement that points almost exclusively to US agriculture. The change of US last minute tariffs.
Trump announces a 90 -day pause in reciprocal tariffs
The Dow Jones shot more than 10% of minimum to maximum on Wednesday, rising 3,740 at its maximum point before settling in a more reasonable rebound of 6.2% in a single day. The Standard & Poor’s 500 (S&P) index rose 375 points, reaching 7.5%, while the Nasdaq Composite rose 1,400 points, netearing 9.4% on Wednesday.
Read more news about actions: Nasdaq shoots 10% after Trump Pause the tariffs for 90 days
The betting bets are being beaten by the news of the delay in the tariffs, and the rates operators now expect much fewer fence cuts during the rest of 2025. According to the Fedwatch tool of the CME, the swap operators of interest rates now expect a total of 75 bp in interest cuts cuts during the rest of the year. A first rate of Fed rates is still waiting at the June rates meeting of the Fed, but a first cut in July remains a firmer bet.
Dow Jones Price forecast
The intra -price action has been decimated by more turns in the latest stage tariff policy of the Trump administration, and Dow Jones has gone from 37,000 to 40,000 in a single negotiation session. However, there are still a significant technical resistance in the 200 -day exponential mobile average (EMA), although the bidders will first need to overcome a soft resistance zone from the minimum of March to 41,000.
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.
