- The Dow Jones fell around 500 points since the end of the previous day on Friday.
- Israel launched a round of surprise attacks against Iran on Thursday night.
- The attacks, in the midst of a medium east already tense, have erased the profits of the week in the Dow.
The Dow Jones industrial average (DJIA) fell on Friday, losing more than 600 points since the end of the previous day, since investors retired after the unexpected wave of Israel’s attacks against Iran. The consumer’s feeling data recounted more than expected, helping to relieve the downward impulse on Friday.
The variable rental markets, driven by the technological rally fed by the AI ​​that has kept them standing in an environment after tariffs, took the opportunity to reduce risks and take some profits. This erased the profits of the week and broke the four -day winning streak of the Dow.
Read more news about actions: The US stock market indices fall after the Israeli attack to Iran
The consumer’s feeling index of the University of Michigan (UOM) for June firmly rose in the last month, reaching 60.5 and far exceeding the average market forecast of 53.5. Consumer inflation expectations at 1 year were also softened, falling to 5.1% from 6.6%, while consumer inflation expectations 5 years dropped to 4.1% from 4.2%.
The next decision of Federal Reserve (Fed) will be announced next week. The Fed is expected to remain in waiting mode while the Central Bank expects possible repercussions of the Trump administration’s swaying approach to commercial policy. After the best inflation figures than expected this week, rates markets are valuing around 70% probabilities of a quarter -point cut in September, with an immediate expected rate cut in October, but more likely it happens in December.
Dow Jones price forecast
It has been a difficult week for holders of positions in the industrial average Dow Jones. After four consecutive days of hard -fought profits, the main actions index has fallen again to a recent consolidation zone, pause the bullish impulse.
The Dow is still negotiated above the 200 -day exponential mobile average (EMA) about 41,800, despite the short -term weakness, and the 50 -day EMA is in the process of completing a bullish crossing with the long -term mobile average, which implies that there could be a new leg to rise if the price action meets the technical support of the 42,000 area.
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.
