- The industrial average Dow Jones won ground on Tuesday.
- The feeling of investors is bouncing after the US President Trump again delayed his own tariffs.
- The additional tariff of 50% by Trump over the EU goods has been delayed until July 9.
The Dow Jones went up with other important shares on Tuesday, with the feeling of investors recovering after the falls of last week. The Trump administration has again delayed the threats of new tariffs, and investors have firmly strengthened in the belief that when the US president Donald Trump threatens new tariffs, the next step will be to retract those tariffs. To his credit, Donald Trump has done little to break that pattern. The results of the consumer’s confidence survey also rebounded in May, breaking a five -month run streak.
The president of the US Trump recently reflected through social networks about the imposition of an additional 50% tariff to all imports from the European Union (EU) as of June 1. However, President Trump has already retracted his own tariff threat in a pattern that has become increasingly familiar for shares markets, pushing the deadline of the 50% tariff of the EU to July 9.
Consumer Board’s consumer confidence index (CB) for May was stronger than expected, with the aggregate survey index bouncing 12.3 points to 98.0 after five consecutive months of falls that saw the feeling index sinking to a minimum of four years of 85.7. The feelings of consumers about the US economy are bouncing after being shaken by the unequal commercial strategies of the Trump administration, and the number of consumers surveyed waiting for a recession in the next 12 months fell during the May reference period.
Despite the increase in feeling about the favorite hobby of President Trump to cancel or delay his own tariff threats, analysts are still cautious. According to Adam Crisafully by Vital Knowledge, “Trump’s more bombshetic tariff threats … will not become reality, but have still imposed substantial import taxes in just the last four months, and its administration is probably not over.”
Dow Jones price forecast
The Dow Jones has risen more than 650 points since the closing of last Friday, forming a technical rejection of the 200 -day exponential mobile average (EMA) and claiming the level of 42,250 for the third time this month. The main stock market index is still below its most recent maximums near the 42,800 region, but the impulse favors additional upward movements.
The daily candles are ready to break a lower pattern of maximums that it has been present in the graphics since the Dow Jones fell from historical maximums above 45,000 in January. However, a firm discount window looms over the Dow while the headlines on the US trade policy dominate the feeling of the market.
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.
