- The Dow Jones continues to turn about 42,000 while investors expect quieter commercial holders.
- The Trump administration is ready to impose strong increases in steel tariffs.
- Donald Trump’s legal battle around global tariffs has deepened this week.
The Dow Jones industrial average (DJIA) is still caught in a short -term congestion while commercial concerns weigh on investors and the new negotiation month begins with a cautious tone. The president of the United States (USA), Donald Trump, promised/threatened to double the 50% steel tariffs while attending a rally of the Steel Workers Union at the end of last week. Commercial tensions between the US and China are also climbing, since both parties launch accusations of early violations of the commercial agreement.
The plaintiffs presented a motion on Monday at the US International Trade Court (USCIT) to stop the pre -existing tariffs of Donald Trump, which were considered as an excess of presidential power after the USCIT determined that the White House had misunderstood the law of international emergency economic powers. The Federal Appeals Circuit granted a suspension of tariffs while the appeal process advances, which could take months. According to new USCIT documents, allowing tariffs to remain in force during the appeal process effectively favors the Trump administration without issuing a formal failure.
Commercial concerns and tariff fears dominate the beginning of the June trade
Donald Trump triumphantly announced a duplicate of tariffs on all the I.UU steel imports last Friday. Speaking to the National Assembly of the United Native Workers Union, President Trump announced that he intends to double taxes on 50%steel imports, a movement that will probably result in US consumers paying even more for steel products. The internal prices of the US for steel products are already some of the highest in the world, and prices could increase even more.
Speaking with reporters in CNBC, Josh Spores, head of Cru Steel Analysis, said that increasing steel tariffs would make steel to the US. It was even more attractive to foreign companies, since USA.
“Steel prices in the US are already higher than anywhere else, and it is a net importer who needs volumes entering. All this only makes prices up there … cars, construction products and appliances are all products that will feel the impact.”
President Trump launched attacks on social networks against China last week, expressing apparent frustration due to the slow rhythm of China in reducing rare land exports restrictions. China responded categorically rejecting Trump’s claims, noting that he is moving at a rate already agreed in commercial terms negotiated in a lax way in Switzerland several weeks ago. China also contracted with its own statements of violations of the trade agreement by the Trump administration. According to a Chinese spokesman, the plans recently announced by the White House to further restrict technological exports to China and revoke students’ visas for Chinese students “unilaterally cause new economic and commercial frictions.”
Greater caution is justified according to the results of the PMI survey
Business confidence can be beaten more hard by tariff policies constantly changing what market experts initially expected. The purchasing managers index (PMI) of May Manufacturing of May receded to a new minimum of six months on Monday, falling to 48.5 when the medium forecasts of the market were waiting for a slight increase to 49.5. The US manufacturing activity is expected to contract in May, with demand, production and supplies all expected to weaken.
Read more news news: Cleveland-Cliffs actions shoot 27% while Trump seeks to double steel tariffs
Dow Jones price forecast
The ongoing commercial headlines, tariff headaches and apprehension about economic activity within the US economy have weighed on actions. The main stock market indices collapsed at the beginning of the year due to Trump’s tariffs, sending Dow Jones to the 37,000 region. The technical recovery of the minimum of April managed to push the offers again next to the 200 -day exponential mobile average (EMA) about 41,600, but the impulse seems to have evaporated for the moment.
The Dow Jones has entered an intermediate consolidation phase between 41,000 and 43,000. The price action is aimed at continuing to rotate laterally until material changes in the US commercial position or economic data will push investors firmly to one side or the other.
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.
