- The Dow Jones rises 3.01% on the day.
- The Nasdaq 100 gains 1.70% today.
- The S&P 500 rises 1.67% at the start of trading on Wednesday.
The Dow Jones is trading in positive territory along with the main stock indices after the results of the elections in the United States.
The Dow Jones Industrial Average began trading at 42,439, while the Nasdaq 100 technology index began trading at 20,081. The S&P 500 began the session at 5,807, in the midst of an election that has given victory to the Republican candidate, Donald Trump.
The Dow Jones sets a new all-time high after the election of Donald Trump as president of the United States
The Dow Jones Industrial Average shows a rise of 3.01% daily, trading at the time of writing at 43,453, reaching a new all-time high at 43,622.
In this context, investors reflect their confidence in the American indices in line with the Dollar Index (DXY), which has skyrocketed 1.77% to trade above 105.25, reaching highs not seen since July 3 at 105.45.
The Republican Party has gained control of the Senate, making it highly likely that it will quickly push through Donald Trump’s tariff agenda.
The Nasdaq 100 reacts to the rise amid an electoral “red wave”
The Nasdaq 100 technology index gains 2.09% today, reaching highs not seen since July 11 at 20,645, driven by Tesla (TSLA), which is up 13.46% at the start of the day.
According to the most recent information, the Republican party has obtained the 50 seats that give it the majority in the Upper House. Meanwhile, in the House of Representatives there is a clear advantage of 198 Republican seats compared to 180 Democrats, although 218 seats are needed to achieve the majority.
On the other hand, TSLA shares have been favored today with a rebound of 13.46%, reaching highs not seen since July 20 at $289.59. The appreciation of their titles is due to the support that the founder of TSLA, Elon Musk, has shown for Donald Trump’s campaign, participating in campaign events and maintaining closeness with the now president-elect.
The S&P 500 is trading in positive territory driven by Discover Financial Services
The S&P 500 stock index operates with a gain of 1.67% at the beginning of trading on Wednesday, reaching a new all-time high of 5,291, after an election day in which Donald Trump declared himself the winner.
Discover Financial Services (DFS) records a 19.46% rise in its share price, setting a new all-time high at $188.23, reflecting investor confidence in the company’s direction. In the same vein, Synchrony Financial (SYF) shares rose 16.70%, trading at the time of writing above $66.21, registering a new all-time high at $66.95.
Investors will focus their attention on the Federal Reserve’s rate decision tomorrow, with consensus expecting a 25 basis point cut, from 5.00% to 4.75%.
Technical analysis of the Dow Jones
The Dow Jones Industrial Average established short-term support located at 41,641, the pivot point of November 4. We observe the next support level at 39,989, the pivot point of September 11.
To the upside, we see the closest resistance at 44,000, a round number where investors are expected to take profits.
Dow Jones Daily Chart
The 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.
