- The Dow Jones remained nearly 41,000 during the market session in the middle of the week.
- Investors reduce their exhibition as they await the last appearance of Fed Powell.
- The Fed should largely keep the rates pending, but the markets are looking for signs of pivot.
The Dow Jones Industrial Average (DJIA) cut in the middle of the range at the beginning of Wednesday, walking in the water just above the major handle of 41,000 main while investors are waiting for the last price call Federal reserve (Fed). The Fed is almost guaranteed to maintain stable interest rates In the midst of the generalized uncertainty of the market in the hands of volatile political strategies that came out of the Trump administration, but timid investors at full rate will closely monitor the Fed chair, Jerome Powell, later in the day, while they are looking for signs that the Fed could get closer to the pivot in a new rate of rate.
The rate of the Fed hopes hopes to compete with a steep diet
Hopes of a short -term pivot in costs of costs may be poorly structured; According to the FXSTREET FED feeling index, the overwhelming majority of fedspeakers have far removed from language which would involve miles of imminent rate. With a strong employment landscape and inflation which continue to return to the target levels, the Fed has little reason to be too concerned about the decline in interest price To support an economy that does not seem to need it. Adding to the fact that Handrands's Handrands’s commercial policies and commercial tactics have considerably high high market volatility, the Fed has little powder in the reserve to make rate reductions for which the White House and market players have claimed.
News from the United States and China are preparing to launch commercial discussions This weekend in Switzerland, initially supported the actions early Wednesday, but the United States Secretary of the Treasury Scott Bessent quickly tempered market expectations. According to the Treasury Secretary Bessent, commercial talks in Switzerland will simply be a preliminary measure, and significant progress could take a while to materialize.
Read the continuation of the actions: Disney shares become 10% higher at the rate of profits
Dow Jones Price forecast
The Dow Jones was rotated in an intermediate model this week, barrier of graphics near the handful of 41,000. The offers remain submerged in the exponential mobile average of 50 days (EMA), and the momentum in the two directions has evaporated.
Dow Jones Daily Chart
Dow Jones FAQ
The industrial average of Dow Jones, one of the oldest stock market indices in the world, is compiled with the 30 most negotiated shares in the United States. The index is balanced by the price rather than weighted by capitalization. It is calculated by adding the prices of the actions of the constituents and by dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. Later, it was criticized not to be representative enough, because it only follows 30 conglomerates, unlike wider clues such as the S&P 500.
Many different factors stimulate the industrial Dow Jones (DJIA). The overall performance of component companies revealed in the profits reports of quarterly companies are the main one. American and global macroeconomic data also contribute because it has an impact on the feeling of investors. The level of interest rate, fixed by the Federal Reserve (Fed), also influences the DJIA because it affects the cost of the credit, on which many companies are highly deposited. Consequently, inflation can be a major engine as well as other measures which have an impact on the decisions of the Fed.
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 management of the industrial average Dow Jones (DJIA) and the Dow Jones transport (DJTA) and only follow the trends where the two move in the same direction. Volume is a confirmation criterion. The theory uses elements of peak and hollow analysis. Dow theory poses three trend phases: accumulation, when smart money begins to buy or sell; Public participation, when the wider public joins; And distribution, when smart money comes out.
There are several ways to exchange the DJIA. One is to use FNBs that allow investors to exchange the DJIA as a single guarantee, rather than having to buy shares in the 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average Etf (DIA). DJIA term contracts allow traders to speculate on the future value of the index and options provide the right one, but not the obligation, to buy or sell the index at a predetermined price in the future. The mutual funds allow investors to buy a part of a diversified DJIA shares portfolio, offering exposure to the overall index.
