- The Dow rises 0.80% while markets celebrate softer data; Treasury yields fall in response.
- Jolts data and consumer confidence do not meet expectations, strengthening the case for a Fed relief in the coming months.
- The ambiguity in commercial policy persists after Besent’s lazy comments about China and the confusion about Amazon tariffs.
The Dow Jones Industrial Average (DJIA) rose more than 300 points or 0.80% on Tuesday, since the US economic data (USA) of the expected than expected suggested the need for lower interest rates, as evidence Diaries of 40,150.
The Djia rises about 40,500 while the weak work and trust figures drive the yields and raise actions despite commercial uncertainty
The market mood remains positive while the three most important stock indices in the US registered profits, although they retreated during the press conference of the US Treasury Secretary, Scott Besent, in the White House. He commented on some advances with India and Japan, but did not clarify regarding commercial conversations with China.
The US press secretary, Karoline Leavitt, revealed that Amazon’s shares were punished after reports that Jeff Bezos’ company was looking to list the costs of product tariffs on her website. Later, a Amazon spokesman reported that the price of the label tariff was never under consideration for the Main Amazon website.
Previously, the US Department of Labor revealed that Jolts data for March fell to 7,192 million, the lowest level since September, indicating a labor demand in weakening. The reading did not meet the expectations of 7.5 million, lowering the 7.48 million of the previous month.
Meanwhile, the Conference Board Conference Conference Index fell drastically to 86.0, its lowest level in almost five years. He dropped from 93.9 and did not meet the forecast of 87.5, highlighting the growing pessimism among consumers.
After the data, the probabilities for the May meeting suggest that the Fed will keep the rates without changes. However, the June meeting is a flown, with the possibilities of reducing indebtedness costs located by 56.8%.
In next week, the operators are attentive to the publication of the US GDP for the first quarter of 2025, the Basic April PCE, followed by the ISM manufacturing PMI and the non -agricultural payroll figures.
Dow Jones price forecast
The Dow Jones exceeded the simple mobile average (SMA) of 39,800, extending its profits beyond the 40,000 mark. Although the price action suggests that buyers are gaining impulse, the relative force index (RSI) is not following the same path. This suggests that the last advance could be ephemeral and pave the way for a deeper setback.
Meanwhile, if the Dow exceeds the 41,000 mark, a 50 -day SMA test is expected in 41,477, followed by the 200 -day SMA in 42,272. With a greater impulse, the 100 -day SMA in 42,576 will be the following objective.
On the contrary, a fall below 40,000 would clear the way to test the minimum of April 23, 39,486, followed by the maximum of April 22, 39,271 to close the gap observed between April 22 and 23.
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.
