- Dow Jones rose slightly on Monday, since the actions ignored the turbulence of the weekend.
- The optimistic mood did not last long, since the volatility of the stock market increased before the new climbing in the Middle East.
- Iran has retaliates against US assets in Iraq and taste after missile attacks of the Trump administration during the weekend.
The Dow Jones industrial average (DJIA) experienced ups and downs on Monday, while investors reacted to the holders that Iran had attacked US military assets in the Middle East in retaliation for the weekend missile attacks ordered by the Trump administration. Variable rental markets have changed their expectations about the hope of a decala in the region, or unless the negative effects for the US economy boost the Federal Reserve (Fed) to rates cuts sooner rather than later.
The United States launched a series of missile attacks against what was believed to be Iranian nuclear facilities during the weekend. The Trump administration avoids the approval of Congress to launch attacks, a movement that will probably generate political reactions within the US government in the coming weeks. Iran responded with missile attacks against a base of the US Air Force in Catar on Monday.
The markets initially stirred in the early hours, with investors fearing a possible closure of the Ormuz Strait by Iran. Approximately a fifth of the world production of crude oil flows through the Strait, and the variable rental markets were concerned about a possible clash in the supply chain. Despite the growing tensions, and that the US seems to reverse the campaign promise of President Trump to avoid getting involved in foreign conflicts, investors are leaving aside the bassist feeling. The markets are betting on the scenario in the Middle East being contained at the moment, and there is hope that a little commercial turbulence can hinder the US economy enough to boost the Fed to a new round of feat cuts.
Read more news about actions: US actions minimize concerns about Iran’s reprisals while the indices rise
Dow Jones price forecast
After a rugged start at the negotiation week, the Dow Jones industrial average is returning to bullish territory and capturing a bullish rebound from the 50 -day exponential mobile average (EMA) near the important price zone of 42,000. The Dow is recovering land in a short -term congestion zone, climbing around 300 points on Monday. The price action remains limited below 43,000 at the moment, and a sustained thrust will first need to firmly break the level of 42,500.
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.
