- Trump intensifies attacks against the president of the Fed, calling him “a great loser” for being slow in the feat cuts.
- The sale led by technological ones drags Nasdaq 3.44%, with Tesla and Nvidia falling 7% and 6% respectively.
- The DXY collapses to 97.92 while the fears for the independence of the Fed and the turbulence in commercial policy cause the flight of American asset investors.
The industrial average Dow Jones (DJIA) collapsed more than 1,000 points, or 3%, below the figure of 38,000 per fourth time in April. Investors were increasingly concerned about the independence of the Federal Reserve (Fed) after the US president, Donald Trump, continued his attacks against the president of the Fed, Jerome Powell, Monday.
The Djia collapses 3% below 38,000 while the fall of technology deepens and the DXY reaches a minimum of 3 years; The market prepares for chaos in politics
President Donald Trump continued his rhetoric about the president of the Federal Reserve, Jerome Powell, referring to him as a “great loser” that always arrives too late to cut the interest rates. Meanwhile, Powell has remained serene, saying that the Fed would remain dependent on the data and even pointing out the possibility of a stagning scenario, recognizing: “We could find ourselves on the challenging stage in which our double mandate goals are in tension.”
In addition to the loss of the Dow, the S&P 500 and the Nasdaq are falling, each 3.16% and 3.44%. The large capitalization companies led by the seven largest technological companies expanded their losses, headed by Tesla (TSLA) and NVIDIA (NVDA), each falling 7% and 6%.
The negative feeling has also affected the dollar, since the distrust of investors towards those responsible for US policies grows. The US dollar index (DXY) follows the yield of the dollar against a basket of six coins, falling more than 1% to 98.27 after reaching a minimum of three years of 97.92.
Trump’s commercial policies continued to weigh on markets due to concerns about an imminent global economic slowdown.
Meanwhile, recent data suggested that operators are valuing 96 basic points of fees of the Fed to the end of 2025.
Dow Jones price forecast
The Dow Jones extended its losses for four consecutive days, consolidating the bearish bias as sellers point to the minimum of the year (YTD) of 36.614 reached on April 7. However, sellers need to close below 38,000 to continue having hopes to drag Djia down.
On the other hand, bulls need to push the Dow above 38,000 to prove the support of the minimum daily April 10, which became resistance in 38,431, before reaching 39,000.
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.
