- The Dow Jones bounced on Thursday, recovering the losses of early week.
- The Trump administration has warned about more tariffs, pointing to specific countries and goods.
- Investors are returning to markets while betting on more tariffs.
The industrial average Dow Jones (SJIA) rose on Thursday, reducing the losses of the beginning of the week after a new round of tariff threats by President Donald Trump. Investors were reluctant to ads of two -digit tariff increases on all imported goods from specific countries, including South Korea and Japan, as well as 50% tariffs on all copper imports and goods in Brazil.
With reciprocal tariffs delayed until August 1, investors are betting that the Trump administration will find a reason to delay or suspend both the reciprocal tariff package initially announced in April, as a new lot of tariffs aimed at specific countries and sectors announced throughout the first half of the week. Market participants continue to trust that most Trump’s tariff threats will not materialize, and the confidence of merchants is increasing as inflationary pressuress Of the tariffs Trump has managed to impose, they are still warm, in the best case.
Unemployment requests remain stable for another week
Initial unemployment applications in the US were better than expected on Thursday, showing less applicants for new unemployment benefits than anticipated during the week. 227K Net applicants of benefits compared to the previous 233k was not an important change in unemployment applications, but stable data figures are sufficient to maintain the feeling of investors on the right path.
Federal Reserve officials (Fed) They think it may be time to make feat cuts They are starting to come to light. Based on the last minutes of the Fed meeting delivered this week, the difference between cutting bets and those of non -cut by those responsible for the policy has been extended in recent months, and the particularly moderately moderate Fed staff is taking advantage of the opportunity to express their opinion in the public sphere. President Donald Trump has been crying out for feat cuts from the Fed, accelerating his discredit campaign against the president of the Fed, Jerome Powell. President Powell remains firm in the Fed waiting position on interest rates, since constant change policies continue to weigh on markets and companies in the US.
Dow Jones price forecast
The Dow Jones registered a gain on Thursday, recovering the losses of the beginning of the week and placing the main shares index in the upper part when entering the final stretch of the Commerce Week. The Dow continues to remain stable near level 44,700, with an upward impulse ready to try again to reach historical maximums just above 45,000.
Dow Jones daily graphics
Dow Jones – Frequently Questions
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.
