- The Dow Jones backed another 700 points on Monday.
- The feeling of investors continues to get worse as the mood of the market sour.
- The key inflation figures of the US CPI and PPIs will be published later this week.
The Dow Jones industrial average (DJIA) took another step on Monday, starting the new negotiation week with a new drop of 700 points. The Dow Jones backed new minimums below 42,100 while the fears of an economic recession continue to grow and the Trump administration agitates global markets with its policy of erratic and changing tariffs.
It is a quiet start for the week on the economic data agenda, but everything changes on Wednesday when the last round of inflation figures of the consumer price index (CPI) for February arrives at the markets. Medium market forecasts expect a slight cooling in the numbers of the general and underlying CPI. Inflation of the general CPI is expected in February to reduce 0.3% intermensual from 0.5%, while the monthly underlying IPC is expected to fall to 0.3% coincident from 0.4%. The annualized IPC is also expected to fall slightly to 2.9% year -on -year from 3.0%, while it is forecast that the underlying IPC for the year finished in February drops to 3.2% from 3.3%.
Despite their ambiguous existence, the markets still feel the bearish pressure of the clumsy tariff threats of US President Donald Trump, on which the Trump administration continues to pivate incessantly. The White House team is struggling to impose elevated tariffs on the closest commercial partners of the US to generate government revenues that compensate for large deficits from the tax cuts planned by President Trump. However, the execution is difficult since the most noisy opponents of the tariff proposals of the Trump team are overwhelmingly consumers and US companies that face significant increases in the costs of spending and operation as the counter-Arancels point to industries and key US sectors.
The Trump administration faced questions about a possible recession in the US economy, dismissing the issue and qualifying an economic recession as a period of “transition.”
Dow Jones News
Despite the sharp fall in the general index on Monday, some quoted values ​​remained on the top side of the day. Amgen (AMGN) rose 2.3%, reaching more than $ 332 per share While the pharmaceutical giant explores the possibility of adding its own medicine for market weight loss.
The losses concentrated on technological and banking actions on Monday, with Apple (AAPL) and Goldman Sachs (GS) falling 5.8% and 5.6%, respectively. Apple fell to $ 225 per share and Goldman Sachs sank $ 528 per share while the fears of recession and tariff concerns weighed on the industries promoted by the profits.
Dow Jones price forecast
The Dow Jones industrial average continues to advance towards the 200 -day exponential mobile (EMA) average just below the price area greater than 42,000. The Dow Jones reached a new minimum of 8 weeks on Monday, adding to the fall of 6.55% of the rate of shares since the last maximum above the level of 45,000.
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.
