- Dow Jones tested lower on Friday after Donald Trump once again headed to China.
- Capital markets are undecided after a legal hook this week for Trump’s tariffs.
- PCE inflation in the USA appeared as expected, although with corrections compared to previous data.
The industrial average Dow Jones (DJIA) stumbled on Friday, when investors are still struck with the novel commercial problems of the White House. The President of the United States (USA) Donald Trump once again focused on China, claiming that their preliminary trade findings were “violated”. Despite the general cooling of the key inflationary data of the price of personal consumption in the USA (PCE) in April, previous data recorded a change in advantage, and the tariff impact on prices is still coming.
Trump renews the rhetoric of the trade war directed directly to China
President Trump’s approach to commercial policy still leads a wedge to markets, dividing the mood of investors inside. Through post on social media, Donald Trump announced that China had “violated” preliminary trade agreements to which two trading giants have agreed in recent weeks. According to Wall Street Journal reports, Trump’s latest anger appears when China Slow-Rolls approves the export of sporadic lands to the USA. This was even more frayed with the nerves of investors, which were already shot after the federal judges said this week that the Trump administration violated their boundaries using national security regulations to adopt wide tariffs.
Trump’s tariffs can remain in place while the appeal process begins. Unfortunately, it pushes the hope of trade transparency in the US, because the White House is to overthrow the ruling. Trump’s employees said that they would also look for other legal ways for implementing their trade program, probably to further balance the congress.
According to sources in administration, the Trump administration develops orders to impose novel restrictions aimed at limiting Chinese access to the American technology industry. The technical rally of AI and the monoliths of making chips that gain from them will not react positively to President Trump trying to block them from one of the largest markets hungry for artificial intelligence in the world.
The technology rally of technology powered by artificial intelligence is ready to face the wind from the fight
During this week, NVIDIA (NVDA) Call, Colette Cress Nvidia, Colette Cress noticed that the technological gigant expected to miss revenues from about 8b from the existing technological restrictions introduced by the Trump administration. Nvidia also expects that it will remain completely closed from the Chinese AI accelerator market, which is to enhance to 50b in the coming years. The CEO of NVIDIA, Jensen Huang, suggested that the Trump administration approach to technological trade with China is based on the incorrect assumption that China is not able to produce systems and processors from the AI ​​registration:
The question is not whether China will have artificial intelligence, yes. The question is whether one of the world’s largest AI will operate on American platforms. The US has based their policy on the assumption that China cannot produce AI systems. This is the assumption … it’s clearly bad.
Read more warehouse messages: Tech supplies slipped as a deterioration of Trump with China, leads to a Friday withdrawal
PCE inflation in the USA adapted to the middle market forecast in April, with an annual PCE Price indicator Inflation ripping at 2.5% y / r. However, the PCE March printing was changed to 2.7% higher, limiting all investors’ celebrations, because the inflationary data continues to grow above the range of 2% of the target federal reserve (FED).
Dow Jones price forecast
The industrial average Dow Jones still got stuck in the mud near the 42,000 handle, because the main capital rate threatens to fall into the consolidation period. The price action remains reinforced just above the 200-day interpretation of the movable medium (EMA) near 41 590, but the potential of growth is squeezed from the end-of-endable charts. Dow Jones slipped into a negative territory in 2025 and remains about 6.5% compared to record heights published at the end of last year.
Dow Jones map
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 sharp money begins to buy or sell; Society’s participation when a wider society is joined; And distribution when sharp 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.
