- Microsoft and Meta exceed the estimates of Q1, feeding the rise of actions linked to AI and the technological rally of the Dow.
- ISM’s manufacturing PMI is contracted; Unemployment applications reach their highest level since February, increasing concerns about a slowdown.
- Markets discount 94 basic fed cuts points by 2025; 2 -year performance indicates a policy change ahead.
He Dow Jones Industrial Average (Djia) It rose more than 100 points, or 0.24%, on Thursday after large technology companies published solid profit reports, ignoring surveys that underlined the continuous economic slowdown in the United States. At the time of writing, the Djia remains firm at almost 40,600 after reaching a daily maximum of 41,096.
The Djia goes up while the big technological ones raise the feeling, compensating for the fears of recession and the weak unemployment requests
Meta Platforms (Meta) and Microsoft (MSFT) published solid gain reports for the first 2025 calendar quarter. Meta reported earnings per share (EPS) of 6.43 $, above the estimates of $ 5,28, with income that exceeded estimates of 41.4 billion dollars to 42.31 billion dollars. For its part, Microsoft had an EPS of $ 3.46, rising from the projected $ 3.22, while market revenues jumped from 68.42 billion dollars to 70.07 billion dollars.
A day after the publication publication, Microsoft’s actions rose 8%, while finishing actions advanced almost 4%. The results promoted the actions of companies related to artificial intelligence (AI) such as NVIDIA (NVDA).
The advances of the Dow have been somewhat limited by the data of the Supply Management Institute, which revealed that the April manufacturing PMI contracted more in the last five months, lowering 49 in March to 48.7, above the mediocre forecasts of 48.
The labor market data also arrived weak, since the initial unemployment applications of the previous week increased to its highest level since February. The number of Americans who requested unemployment benefits in the week that ended on April 26 was 241K, above the expected 224K and an increase from the 223K of the previous week.
Thursday data has increased concerns about a possible recession in the US, after the data of the Department of Commerce that portrayed a contraction of the US economy of 0.3%. This and the weakness of the labor market paint a gloomy panorama for the publication of non -agricultural payroll figures (NFP) on Friday.
Fed is expected to cut rates
The data of the Chicago Commerce Board (CBOT) show that the SWAPS market expects 94 basic stitches of relief towards the end of the year, as revealed by the futures contract of the federal fund rate of December 2025.
The US Treasury Secretary, Scott Besent, suggested that the 2 -year 2 -year Treasury bond performance points out that the Fed should cut rates.
Dow Jones price forecast
The Dow Jones still has a bearish trend, although the bulls found some relief after overcoming the simple mobile (SMA) average of 39,705. The Djia reached a weekly peak of 41,096, without trying the 50 -day SMA in 41,331. Not to do so exacerbated a setback that is prepared to drag the index around 40,500.
A rupture of the latter could expose the level of 40,000 followed by a minimum challenge of April 23, 39,486, before the maximum of April 22, 39,271 that would close the gap observed between April 22 and 23.
On the contrary, the bulls recovered 41,000 and look for a higher ceiling level test. The first resistance is the 50 -day SMA, followed by the 200 -day SMA at 42,277 and the 100 -day SMA at 42,503.
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.
