- The Dow Jones is trading narrowly on Thursday, cruising near all-time highs.
- Investors are gearing up and waiting for the Fed’s latest rate decision.
- Markets are generally anticipating another quarter-point cut by Fed Chair Jerome Powell.
The Dow Jones Industrial Average (DJIA) is trading in a tight range on Thursday, testing near all-time highs set earlier this week near 43,800. Markets soared this week after the 2024 US presidential election revealed a clear path to victory for former President Donald Trump, and markets remain near the top end in preparation for a further backed up push. by a widely anticipated rate cut by the Federal Reserve (Fed).
According to the CME’s FedWatch tool, rates traders are pricing in a nearly confirmed 25 basis point rate cut by the Fed late in Thursday’s US market session, with a 99.1% chance of a quarter point cut to follow September’s 50 basis point opening rate cut. Investors expecting a final quarter-point rate cut in December are struggling with some expectations that the Fed could hold after November, with a 67% chance of a final 25 basis point rate cut on December 18. December.
Figures from the University of Michigan (UoM) Consumer Sentiment Index to be released on Friday will close out the week’s hectic release schedule. Median market forecasts expect the UoM Sentiment Survey to rise to 71.0 in November after the previous month’s cautious move to 70.5.
Dow Jones News
The Dow Jones is moving slowly on Thursday, with the main stock index coming in between. Intel (INTC) has recovered about 4%, rising to $26 per share in a rebound after it was announced that the chipmaker would be removed from the Dow Jones this week, ending a 25-year stay on the major stock index. . On the low end, JPMorgan Chase (JPM) fell almost 4%, dropping from $238 per share after a spectacular post-election rally.
Dow Jones Price Forecast
The latest bullish momentum in the Dow Jones has led the main stock index to reach the 44,000 area. The DJIA is up almost 17% for the year, rising 5.33% from bottom to top in October alone.
With the Dow Jones testing deep into bullish territory, downside pressure will be building to drag the price action back to the 50-day exponential moving average (EMA) near the key 42,000 level. Despite a clear path forward for the bears, the lack of technical pivot points with bids touching all-time high territory makes it difficult to value a short entry point; It turns out that rising knives are just as difficult to catch as falling ones.
Dow Jones Daily Chart
The Dow Jones FAQs
The Dow Jones Industrial Average, one of the world’s oldest stock indices, is made up of the 30 most traded securities in the United States. The index is weighted by price rather than capitalization. It is calculated by adding the prices of the securities that comprise 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 indices such as the S& P 500.
There are many factors that drive the Dow Jones Industrial Average (DJIA). The main one is the aggregate performance of its component companies, revealed in quarterly corporate earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
The Dow Theory is a method for identifying the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where they are both moving in the same direction. Volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. The Dow theory proposes three phases of the trend: accumulation, when the smart money begins to buy or sell; public participation, when the general public joins the trend; and distribution, when the smart money abandons the trend.
There are several ways to trade the DJIA. One of them is to use ETFs that allow investors to trade the DJIA as a single security, instead of having to buy shares of the 30 companies that comprise it. A prominent example is the SPDR Dow Jones Industrial Average ETF (DIA). Futures contracts on the DJIA allow traders to speculate on the future value of the index, and options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds allow investors to purchase a portion of a diversified portfolio of DJIA securities, providing exposure to the 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.
