- The Dow Jones approached 43,000 while investors await a resolution to commercial tensions between the US and China.
- Key US inflation data will be published this week, starting with the US IPC inflation figures on Wednesday.
- Inflation expectations have been modeled recently, but market forecasts still prepare for tariff impacts.
The industrial average Dow Jones (DJIA) rose on Monday, testing above 42,800 while the ongoing commercial conversations between the Trump team and Chinese representatives continue in London. Variable rental markets are “melting” as investors expect signs that Trump and Xi Jinping of China will find a solution to the rhetoric of accelerationist commercial war that has dominated the markets in a struggle of feelings since the Trump administration announced a general package of “reciprocal tariffs” in early April.
According to reports, President Donald Trump gave his negotiation team in London permission to explore the lifting of commercial restrictions on technological exports to China as a possible negotiation letter. If the movement will have a material impact on commercial conversations with China remains an unknown. The new Trump technology export restrictions to China, aimed at limiting Chinese access to the technology necessary to build AI modeling machines, were introduced after the two countries had already begun commercial conversations.
Inflation data is emerging as an important topic in next week
The inflation figures of the May Consumer Price Index (CPI), which will be published on Wednesday, will begin a series of price volatility measures that will be launched this week. The short -term CPI inflation is expected to increase as the Latigazo tariff policies that were announced, canceled, reinstated and changed at the beginning of the second quarter begin to have a growing impact on inflation data in the coming months. Annualized underlying CPC inflation is expected to increase 2.9% year -on -year from 2.8%, well above the upper limit of 2% of the Federal Reserve (Fed).
The latest consumer expectations survey of the New York Federal Reserve showed that consumer inflation fears are beginning to moderate: the data of the last survey showed that the average consumer expected inflation to 1 year to be around 3.2%, compared to the previous one 3.63%. However, the results of the consumer inflation expectations of the University of Michigan (UOM), scheduled to be published this Friday, will serve as the key impression of feeling this week.
Dow Jones price forecast
The industrial average Dow Jones (DJIA) continues to advance towards the upper end of the recent consolidation, approaching a short -term technical roof at the 43,000 level. The price action is maintained on the top side of the 200 -day exponential mobile average (EMA) about 41,650. The bullish impulse could see a pause to make breath as the technical oscillators incline towards overcompra territory.
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.
