- Dow Jones shed around 150 Points on Friday, returning to 41 225.
- Investors are preparing for geopolitical tensions when the USA and China manage initial commercial talks.
- Even a post in social media from President Trump thinking about 80% tariffs can strengthen market moods.
The industrial average Dow Jones (DJIA) was on Friday in a wider market, falling below 41 250, because investors are preparing for a busy weekend. . United States (USA), and China is going to open commercial talks in Switzerland this weekend, but decision -makers from both administrations warned that the talks would be strictly preliminary. Chinese delegates clearly warned that the final contract could be in a few months.
US President Donald Trump hit social media early on Friday, publicly thinking about a potential walking of tariffs on Chinese goods, which currently amount to 145%. Donald Trump raised the idea of reducing the Chinese tariff to 80%. 80% tariff for Chinese goods is indistinguishable from 145%, because both levels are so high that they functionally represent the embargo for low-cost trade, from which the entire US economy is completely dependent.
Middling Fed remains afraid of corrections of rates
. Federal reserve (Fed) This week he hit the tone of waiting and seeing, after interest rates stood in May. Lots of Fed decision makers appeared on Friday, but everyone is putting a significant effort to avoid direct speaking about monetary policy. The Fed looks like they move their arms to uncertainty resulting from trade policy, which is not able to accurately forecast economic results, leaving the Fed dependent on the Fed definitely planted on the side.
According to the CME Fedwatch tool, salespeople are still valuing better than even one chance that the Fed was forced to provide another reduction in the quarter rate in July, but the plants bleed towards another rate. With the current cut markets, the rates will value 40% of the chance that the FED will not reduce in July, compared to 20% to 30% of the chances of floating at the beginning of this week.
Dow Jones price forecast
Dow Jones is ready for an extended distance after phubbuling the stubborn run in a 200-day interpretation average (EMA) near 41,600 this week. The price action decreases from the key movable average, but the next technical support is valued at an EMA 50-day near 41 150.
Despite the obscure technical clouds gathering above the head, the shoot still rests strongly in the hands of bidders. Dow Jones recovered over 12.5% compared to April below 37,000, and the offers still grinded with the recovery of market moods.
Dow Jones Daily Table
Dow Jones FAQ
The industrial average Dow Jones, one of the oldest stock market indicators in the world, is developed from the 30 most rotating operations in the USA. The index is rather weighted with the price, not weighted by capitalization. This is calculated by adding up the operating prices and dividing them by the factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years he was criticized for not representative enough, because he follows only 30 conglomerates, unlike wider indicators such as S&P 500.
Many different factors drive the industrial average Dow Jones (DJIA). The main results of component companies revealed in the company’s quarterly reports are the main results. The condition and global macroeconomic data also contribute because they affect the mood of investors. The level of interest rates, determined by federal reserves (Fed), also affects DJIA, because it affects the cost of a loan on which many corporations are strongly dependent. Therefore, inflation can be the main driver, as well as other indicators that affect the FED decisions.
DOW theory is a method of identifying the basic stock exchange trend developed by Charles Dow. The key step is to compare the industrial direction of Dow Jones (DJIA) and medium transport of Dow Jones (DJTA) and follow only trends in which both move in the same direction. Volume is confirming criteria. The theory uses elements of peak analysis and the trough. Dow theory assumes three phases of the trend: accumulation when shrewd money begins to buy or sell; Society’s participation when a wider society is joined; And distribution when shrewd money comes out.
There are many ways to trade in DJIA. One of them is the apply of ETFs that allow investors to trade DJIA as one security instead of buying shares in all 30 components. The leading example is SPDR DOD Jones Industrial ETF (Dia). Djia Futures contracts enable traders by speculating the future value of the index and the options ensure the appropriate, but not the obligation, buying or selling the index at a predetermined price in the future. Investment funds enable investors to buy a diverse DJIA shares portfolio, thus ensuring a general exposure to the general indicator.
