- The non -agricultural payrolls of April exceed consensus in 177K; The unemployment rate is maintained at 4.2%, relieving concerns about a recession.
- Trump presses the Fed to cut rates despite the optimistic data; The CBOT shows 88 basic states of relief incorporated.
- Apple and Amazon fall for disappointing sales in China and slowdown in cloud growth despite overcoming EPS forecasts.
The industrial average Dow Jones (DJIA) rose more than 600 points, or more than 1.65%, on Friday after a solid employment report in the US that dissipated the fears that the world’s largest economy is tied to a recession. The Dow is prepared to close the week with profits of more than 3% and, at the time of writing, it is above the 41,300 brand after bouncing from the minimum daily of 40,658.
Djia triggers over 41,300 while solid NFP data improve feeling, even when Fed fees expectations are stable
Non -agricultural payrolls of the US in April increased by 177K, below the 185K decreased number in March, but overcoming 130k estimates. At the beginning of the week, a discouraging national employment change report suggested that companies were hiring less people than the NFP revealed.
In addition, the unemployment rate remained unchanged in 4.2%, aligned with the forecasts, which could prevent the Federal Reserve (Fed) from loosening politics.
Karen Georges, Actions Fund Manager in Ecofi in Paris, said: “These good numbers are not prone to feed inflation, but this does not change the rules of the game for the Federal Reserve and Jerome Powell.”
The president of the USA, Donald Trump, took advantage of the good figures and criticized the president of the FED, Jerome Powell, in a publication in his Truth social network, demanding that the FED reduce interest rates.
Factory orders in the US increased by 4.3% monthly, above 0.5% of the previous month, but slightly below the expected 4.5%.
Actions related news
Meanwhile, Apple (Appl) and Amazon (AMZN) shares fell 3.5% and 1%, respectively, being the first affected by a disappointment in sales in China and concerns about tariffs. Apple revealed its profits for Q1 2025, with earnings per share (EPS) of 1.65 $, above the estimates of $ 1.62, and revenues of 95.36 billion dollars, above the 94.53 billion expected.
Amazon actions fell slightly due to the disappointment in cloud income. In its profit report for Q1 2025, the EPS increased to $ 1.59, above the provision of $ 1.38, and the income increased to $ 155.7 billion, above the forecasts of 154.88 billion.
Fed is expected to cut rates
The data of the Chicago Commerce Board (CBOT) show that the SWAPS market expects 88 basic states of relief towards the end of the year, as revealed by the futures contract of the federal fund rate of December 2025.
Dow Jones Price forecast
The Dow Jones still has a bearish trend, although the operators are testing the simple mobile average (SMA) of 50 days in 41,271. A daily closure above the latter could extend the recovery beyond the 42,000 figure, with the bullies pointing to the 200 -day SMA in 42,281.
On the contrary, if the Dow falls below 41,000, the first support would be the 40,000 mark before the 20 -day SMA of 39,705. Once surpassed, the following support would be the minimum of April 23, 39,486, before the maximum of April 22, 39,271 that would close the gap observed between April 22 and 23.
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 DJA allow the specular operators on 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.
