- The Dow Jones falls 1.48% on the day.
- The Nasdaq 100 fell 1.86% daily, dragged down ON Semiconductor and PayPal Holdings.
- The S&P 500 loses 1.51% today after the US NFP.
The Dow Jones hit a daily high of 42.640, where it attracted sellers that dragged the index to a nine-week low of 4.1950.
The Dow Jones Industrial Average began trading at 42,518, while the Nasdaq 100 technology index opened at 21,067. The S&P 500 began trading at 5,890, maintaining the short-term bearish outlook.
The Travelers Companies and Nvidia lead losses in the Dow Jones
The Dow Jones stock index currently trades above 41.975, losing 1.48% on Friday, along with the main stock indices.
The manufacturer of software and components focused on artificial intelligence, Nvidia (NVDA) loses 3.28% today, signing its third consecutive downward session, reaching lows not seen since January 2 at $134.22. Likewise, The Travelers Companies shares fell 4.24% daily, reaching lows from October 10 at 231.93.
The Nasdaq 100 is dragged into the negative zone by ON Semiconductor and PayPal Holdings
The Nasdaq 100 technology index fell 1.86% on the day, reaching the lows of November 27 at 20,711, marking its fourth consecutive session with losses.
ON Semiconductor shares plummet 6.59%, reaching levels not seen since July 15, 2022 at $53.60. In the same vein, PayPal Holdings shares fell 6.02%, marking their third consecutive day of decline, reaching the lows of November 8 at $82.24.
The S&P 500 trades lower after the US NFP
The S&P 500 index loses 1.51% today, currently trading at 5,817, reaching December 20 lows of 5,803.
According to the US Bureau of Labor Statistics, nonfarm payrolls increased by 256,000 in December, beating analysts’ expectations of 160,000. On the other hand, the unemployment rate decreased marginally to 4.1% from 4.2%, while labor force participation remained stable at 62.5%. Hello
Technical analysis of the Nasdaq 100
The Nasdaq 100 reacted at short-term resistance set by the Jan. 6 high at 21,697. We observe the closest support zone at 20,611, minimum of November 27, 2024. The next key support is at 20,293, pivot point of November 19, 2024.
Nasdaq 100 4-hour chart
Dow Jones FAQs
The Dow Jones Industrial Average, one of the world’s oldest stock indices, is made up of the 30 most traded securities in the United States. The index is weighted by price rather than capitalization. It is calculated by adding the prices of the securities that comprise 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 indices such as the S& P 500.
There are many factors that drive the Dow Jones Industrial Average (DJIA). The main one is the aggregate performance of its component companies, revealed in quarterly corporate earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
The Dow Theory is a method for identifying the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. The Dow theory proposes three phases of the trend: accumulation, when the smart money begins to buy or sell; public participation, when the general public joins the trend; and distribution, when the smart money abandons the trend.
There are several ways to trade the DJIA. One of them is to use ETFs that allow investors to trade the DJIA as a single security, instead of having to buy shares of the 30 companies that comprise it. A prominent example is the SPDR Dow Jones Industrial Average ETF (DIA). Futures contracts on the DJIA allow traders to speculate on the future value of the index, and options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds allow investors to purchase a portion of a diversified portfolio of DJIA securities, providing exposure to the 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.
