The Dow Jones stumbles into the prior volatility to tariffs

  • The Dow Jones stirns Tuesday while the markets prepare for tariffs.
  • The US business surveys rates were contracted for the second consecutive month.
  • The US tariffs are expected to enter “immediately” after the announcement on Wednesday.

The Dow Jones Industrial Average (DJIA) moved in the graphics on Tuesday, falling after the results of the US Purchase Management Index (PMI). Announcement of tariffs that has been threatened for a long time by the president of the USA, Donald Trump, which he has called “Liberation Day.”

The exact details of which tariffs will be announced and when they will enter into force they remain elusive. The Trump administration has been playing a “Chickn” game with the markets on tariffs since Trump assumed the position on January 20, announcing, changing and going back in multiple waves of tariffs during the last 71 days. President Trump has clung to his self -imposed deadline on April 2 for several months and promises a list in constant change of tariffs that could include fixed import taxes on cars, wood and pharmaceutical products, in addition to general tariffs on most of the largest commercial partners of the US. On Wednesday during a ceremony in the Rosas of the White House.

The USM manufacturing PMI for March It fell faster than expected, going down to 49.0 from 50.3 while companies prepare for expected tariff ads. The medium forecasts of the market were waiting for a figure of 49.5 or better. The New PMI Manufacturing PM index ISM also fell dramatically for the second consecutive month, decreasing to a minimum of two years of 45.2.

Read more news about economic data: Jolts employment offers in the US decrease to 7.56 million in February

Despite the downward figures in key data and the increase in fears on Trump’s tariffs, rates markets took the opportunity to increase their bets due to an additional Fed relief this year. According to the CME Fedwatch tool, rates operators are now valuing almost 80% probabilities of at least a 25 basic points cut by the Federal Reserve (Fed) at the June 18 policy meeting.

Actions news

Most stock market rates remain close to plans on Tuesday. However, Dow Jones continues to quote around 200 points below Monday’s closure prices, oscillating about 41,800. Standard & Poor’s 500 fell slightly, falling from 5,600, while the Nasdaq Composite remains stable about 17,300.

Tesla (TSLA) bounced 4.7% on Tuesday, rising to $ 271 per share. Despite a short -term recovery, the producer of electric vehicles, which has been beaten, continues to fall dramatically from the historical maximums above $ 435 per share established last December. On the negative side, Southwest Airlines (LUV) collapsed 6.8% to $ 31 per share after airlines received a strong reduction this week, causing air travel shares to fall. Southwest Airlines was the most affected, being reduced to a firm qualification of “lower performance” by Jeffries credit qualification analysts.

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Dow Jones price forecast

The Dow Jones industrial average is moving in the graphics near the 200 -day exponential (EMA) mobile average in the 42,000 zone while investors prepare so that geopolitical pressures finally finally explode. The main stock market index remains limited on the low side of the historical maximums just above 45,000 established last November, but it seems that a firm technical floor has been set just north of the main price level of 40,000.

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

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