- The Dow Jones rose around 500 points on Tuesday, exceeding 35000.
- Investors trust a continuation of the decrease in tensions in the Middle East.
- Those responsible for the Fed monetary policy remain cautious about inflation and pressure on unemployment caused by tariffss.
The Dow Jones industrial average (DJIA) recovered on Tuesday, with the strengthened Variable Income Markets in general, since the conflict between Israel, the USA and Iran seems to be cooling. Crude oil markets are going back, falling to a minimum of two weeks and further relieved market fears. Despite the general improvement in the feeling of investors, Federal Reserve officials (FED) remain restless due to the possibility of an increase in inflation caused by tariffs, especially around the midpoint of Q2-Q3.
Israel and Iran seem to be approaching a high fire agreement, although with some setbacks, which has caused a rally in the variable income markets. An unstable fire agreement, which was largely mediated by the US president, Donald Trump, helped strengthen the confidence of the market in which his bets for a cooling of tensions would result. Missile exchanges reports between Iran and Israel hours after the start of the Trump’s high fire agreement caused a public reprimand of President Trump addressed to both Israel and Iran, but the markets continue to expect a setback in the tensions between the two countries of the Middle East.
The president of the FED, Jerome Powell, began the first half of his two -day testimony before the Financial Committees of Congress and the Senate on Tuesday. The president of the Fed reaffirmed the determination of the Fed not to make adjustments in the policy rate until they have a clearer idea about the type of inflationary impact that tariffs could bring, specifically highlighting the concerns about an increase in inflationary pressure as summer months advance.
Rate operators still have their hopes placed in a rate cut in September, according to the CME Fedwatch tool. The probabilities of at least one quarter of a point on September 17 remain about 80%, with a chance of an additional cut in October around 60%.
Read more news about actions: The US stock markets will open up while the high fragile fire continues to drive the risk appet
Dow Jones price forecast
The thrust of the industrial average Dow Jones has brought the intradic offers above the area of ​​43,000, and the Djia is prepared to close above the important psychological level for the first time since the beginning of March. The main stock market index has been completely recovered from its fall after the announcement of tariffs that began in early April, and the bullish impulse is prepared to take the Dow again to historical maximums above 45,000.
Dow Jones daily graphics
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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.
