- China's tariff communication eases tensions but failed to spark the full recovery.
- Trump's “total success” in tariffs changes emotion.
- UOM sentiment hits 52.2; Inflation expectations advance 6.5% for 2025.
The Dow Jones Industrial Average (DJIA) registered losses of more than 0.32% on Friday amid the uncertainty in the trade war between the US and China. However, while the news was broken that China could exempt some of the US goods from the tariffs, Beijing seemed to have de-escalated tensions. This and a breakdown in the US consumer sentiment retain the DJIA walking near 40,000 instead of trying the highs of the current week.
DJIA slips as mix -halong Signals of China and Trump's tariff tariff weighs at risk condition
The risk of appetite remains mixed -even though China has adopted a flexible stance in the negotiations in Washington. Meanwhile, the comments of United States President Donald Trump said he would consider a “total success” if the US had maintained 20% to 50% tariffs on foreign countries a year from now on the DJIA to a foot due to a slight emotional move.
Meanwhile, the US consumer feelings in April worsened, as revealed by a University of Michigan (UOM) poll. The index fell to 52.2 from 57 in March, the fourth lowest reading of data since the late 1970s. The survey showed that expectations for the economy, revenue, stock market, and homebuying conditions deteriorated from a month before.
The UOM poll showed that inflation expectations rose in the past 4.4% over the next 5 years, which Americans expect to increase prices by 6.5% for the upcoming 12 months.
US equality also feels the disease as the expectations of a backdrop in the US increase from 30% to 45%, according to economists reviewed by Bloomberg.
Moreover, gold prices have remained forced by the US dollar recovery. Bullion prices drop 1.89% to $ 3,285. At the same time, the US dollar index (DXY), which monitors the performance of a basket of six currencies against the US dollar, rose 0.27% to 99.55.
DOW JONES PRICE PRICE
Dow's Bearish bias has not changed even though the index is set to end the week with acquisitions of more than 2% above 40,000 marks. Kamag -child Index Index (RSI) shows momentum remains neutral, an indication that consumers are struggling to encourage higher DJIA, though emotion has improved.
If the DJIA removes 40,500, the next resistance will be up to 40,790. The main resistance is ahead of 41,000. Conversely, if the seller is pushing the index below April 23 at 39,486, look for a high April 22th test of 39,271 to close the space witnessed between April 22 and 23.
Dow Jones FAQs
The average industry of Dow Jones, one of the oldest stock market indices in the world, is combined with 30 most traded stocks in the US. The index is weighted price than the weight of capitalization. It is calculated by summarizing the prices of the scope of the scope and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, which also established the Wall Street Journal. In the coming years it is criticized for not widely representative as it only monitors 30 conglomerates, unlike wider indices such as S&P 500.
Many different factors are driving the Dow Jones (DJIA) industrial average. The combined -performance of companies companies revealed in quarterly companies revenue reports is the main one. US and global macroeconomic data are also contributing because it affects the investor's feelings. The level of interest rates, set by the Federal Reserve (FED), also influences the DJIA as it affects the cost of credit, where many corporations are highly dependent. Therefore, inflation can be a major driver as well as other metrics that affect Fed's decisions.
Dow theory is a method for recognizing the basic trend of the stock market developed by Charles Dow. One key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and just follow the trends in which both move in the same direction. Volume is a confirmation standard. The theory uses elements of peak and trough analysis. Dow's theory brings three phase phases: accumulation, when smart money begins to buy or sell; Public participation, when the wider public is joined; And distribution, when smart money comes out.
There are a number of ways to exchange DJIA. One is the use of ETFs that allow investors to exchange DJIA as a single security, rather than buy sharing with all 30 constituents. A leading example is the SPDR DOW Jones Industrial Average ETF (DIA). DJIA futures contracts give entrepreneurs to think of future index value and options provide correctly, but not the obligation, to buy or sell the index at a predetermined price in the future. Both funds give investors to buy a portion of a darling -daring portfolio of DJIA stocks thus providing exposure to the general index.
