- The Dow Jones collapsed around 300 points on Friday.
- According to the White House, the reports of a delay in tariffs are false.
- The US PCE inflation complied with expectations, and commercial tariffs will enter into force this weekend.
The industrial average Dow Jones (DJIA) broke down towards the end of the US negotiation session on Friday. The actions retreated after a spokesman for the US president Donald Trump reaffirmed that commercial tariffs against Canada, Mexico and China will be implemented this Saturday.
The market prior reports suggested that President Trump’s team would postpone tariffs and that the White House would institute exemption policies that US business partners could use to soften the impact of tariffs on key industries. The reports were enough to maintain the feeling of rising investors, with JPMorgan analysts pivoting to wait for a “base case” of non -tariffs at all. However, the White House Press Secretary Karoline Leavitt crushed those hopes, reiterating that the import tariffs of 25% about Canada and Mexico and a 10% tariff over all Chinese products will be implemented from the 1st of 1 February.
Blanca: the previous reports are incorrect, the tariffs will arrive on February 1
More cold water was thrown over the feeling of investors after the press secretary Leavitt confirmed that, although President Trump is “exploring” an exemption mechanism and an exemption specifically for the Canadian crude oil industry, there is currently nothing In the books. The US economy depends largely on the imports of Canadian crude oil, with most US refineries prepared to process heavy crude oil products from Canada and Mexico, not the products of light oil light oil and sweet produced by US bombs
The Personal Consumption Expenditure Index (PCEPI) of the USA ), which makes it difficult for the US Central Bank to deliver rates cuts in a timely manner. The US PCE inflation remained stable at 2.8% year -on -year in December.
Dow Jones News
Almost the entire Board of Actions of Dow Jones fell in Red on Friday, with some technological giants managing to maintain slight profits for the day. Amazon (AMZN) remained 1.6% above Friday’s opening offers about $ 240 per share, followed by Cisco Systems (CSCO), which won 0.4% in the day to cross $ 60 per share.
Chevron (CVX) fell to the bottom of the Dow Jones, sinking 4.5% and falling below $ 150 per share. The US energy companies are largely exposed to possible commercial tariffs that may include Canadian crude oil sources. Chevron also reported a loss in his earnings per action in its update of profits prior to the market, citing lower margins in refined products.
Dow Jones price action
The bearish action of the price of Dow Jones on Friday sent the offers again below 44,800, reducing the possibilities of an upward recovery of the historical maximums above 45,000. The main stock market index is now testing again in the 44,600 region, and the recent Alcista de Djia race seems to be evaporating.
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.
