- The Djia jumps 1.8% to quote above 39,800 after Trump says Powell will not be removed.
- The Wall Street Journal informs that the US is considering tariff cuts to China to relieve tensions.
- Besent of the Treasury confirms that there is no unilateral offer, but both parties see the need for mutual relief.
- Apple and Nvidia rise 3% and 5% as the feeling between the US and China improves.
The industrial average Dow Jones (DJIA) rose more than 490 points or about 1.30% on Wednesday in the middle of the operators’ relief for a possible de -escalation of the commercial war between the US and China and the comment of US President Donald Trump that he does not plan to remove the president of the Federal Reserve (FED), Jerome Powell. At the time of writing, the Djia remains above 39,800 after reaching a daily minimum of 39,544.
The hopes of de -escalacy in the commercial war between the US and China cause a technological rally; Apple and Nvidia lead the profits, gold falls despite the decrease in yields
On Tuesday, Trump said China’s tariffs would be less than 145%, but threatened that “it will fall substantially, but it will not be zero.” A story on the Wall Street Journal that Washington is considering reducing tariffs to China to relieve tensions between this and the US improved the appetite for the risk of operators.
The secretary of the US Treasury, Scott Besent, added: “There is no unilateral offer from Trump to cut the tariffs to China,” adding that the commercial war needs to be unwritten so that the discussions progress.
The actions of US companies exposed to China jumped, led by Apple (Appl) and NVIDIA (NVDA), with increases of 3% and 5% respectively. Meanwhile, the feeling of the market exceeded the gold rally so far, with the yellow metal falling more than 2.75% to $ 3,286, despite the fact that the US treasure yields are also falling, with the coupon of the 10 -year bonus lowering three basic points to 4,364%.
Dow Jones price forecast
The downward trend of the Djia remains intact, however. After reaching a daily maximum of 40,336, the index seems to be prepared to close the ‘GAP UP’ sponsored by Trump’s comments on Tuesday. This means that the Dow could fall and challenge the maximum of April 22, which became support in 39,271, before trying a rally towards the 40,000 mark, which was briefly tested before Besent’s comments.
On the contrary, bassists need to drag the index below 39,000 for a bearish continuation, which would open the door at lower prices. The following support would be 38,500, followed by 38,000, before trying the minimum of the year (YTD) of 36,614, which was reached on April 7.
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.
