- Trump promises new tariffs on pharmaceutical products, warns that the EU “took advantage” of the US; Aid is also considered for the automotive industry.
- China stops Boeing airplanes deliveries, points to American aircraft pieces as the commercial war expands beyond electronics.
- The Dow rise is limited about 40,500; A fall below 40,000 could expose 39,877 and deepen the bearish pressure.
The Dow Jones industrial average (DJIA) previously advanced in the US session 0.3% or more than 120 points. However, optimism among investors faded recently, despite the fact that the CBOE Volatility Index (VIX) fell below 30 after reaching a maximum close to 60 last week.
The Djia cuts profits after an early rally; Volatility is relieved, but commercial tensions and tariff risks keep the cautious bulls
The president of the United States, Donald Trump, announced that he will soon impose tariffs on imported pharmaceutical products and reiterated that the EU has been taking advantage of the US Trump added that he is looking to help automotive companies and that some things will emerge.
Meanwhile, China ordered national airlines to freeze all the new installments of Boeing aircraft and stopped purchases of American aircraft pieces. Last week, Washington excluded important electronic categories and intelligent telephones from 145% tariffs on Chinese products. However, the comments of President Trump and the Secretary of Commerce, Howard Lutnick, suggested that these exemptions could only be temporary.
The US economic agenda is light, with retail sales that are expected to be published on Wednesday. The operators must be aware that the negotiation week will be shortened due to the Easter holiday on Friday.
Dow Jones price forecast
The Dow continues to have a bearish trend despite the fact that the index has clung to the figure of 40,000, supported mainly by an optimistic mood in the market. However, President Trump’s comments could exert down pressure and pave the way for a ‘bassist’ continuation below the figure of 40,000.
A fall below this last will present the minimum of April 14, 39,877, followed by the minimum of April 7, 36,480. On the other hand, if the bulls intervene and push prices beyond 40,500, the immediate level to be challenged will be the maximum of April 10 in 40,909. Once surpassed, 41,000 will be the following.
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.
