Dow Jones Industrial Average squeezes higher on Friday

Fonte Fxstreet
  • The Dow Jones is inching back into record highs on Friday.
  • The index continues to find play above 42,000 in the post-Fed glut.
  • The Dow Jones stock index rose up to 100 points, or 0.25%, during Friday trading.

The Dow Jones Industrial Average (DJIA) edged back into the top end during the Friday market session, keeping bids north of 42,000 and sticking close to this week’s all-time record peaks. Equities pivoted firmly into the bullish side after the Federal Reserve (Fed) cut interest rates for the first time in over four years, delivering an outsized 50 bps rate cut.

Federal Reserve (Fed) Chair Jerome Powell delivered a jumbo 50 bps rate cut this week, pivoting the narrative as a “re-calibration of policy” to shore up the US labor market rather than an outright snap reaction to decaying economic indicators. Markets, for their part, scooped up the Fed Chair’s bid full-parcel, bolstering equities across the board in a rate-cut splurge and sending the US Dollar Index (DXY) to a 14-month low.

With the Fed’s first rate cut in over four years finally out of the way, investors are now ready to pivot to the next immediate task: betting on whether the Fed’s November rate cut will be a 25 bps follow-up or another 50 bps slash. According to the CME’s FedWatch Tool, rate traders have fully priced in another rate cut from the Fed on November 7, with bets evenly split between 25 and 50 bps. Rate markets are so confident the Fed will deliver a follow-up rate cut in a little over six weeks there is currently a 0% chance priced in of the Fed holding rates steady in November.

Dow Jones news

A little under half of the Dow Jones equity index is underwater on Friday, with losses being led by Intel (INTC) which has backslid -3.5% and tumbled below $20.50 per share. Intel recently announced multiple plans to spin the vessel back keel-side down, including axing around 10% of their global workforce, spinning off their foundry business into an independent subsidiary, and inking a fresh deal with Amazon to produce exclusive AI-based chipsets for Amazon Web Services. Despite all of the planned pivots, investors are still balking at the silicon company’s expected $25 to $27 billion in capital expenditures over the next year.

The Dow Chemical Company (DOW) is also chasing the bottom of the barrel on Friday, despite a recent announcement that the manufacturing company was tapped to receive $100 million in subsidy funding from the Department of Energy to establish or expand US-based battery manufacturing.

Dow Jones price forecast

Despite an absolutely stellar performance on the charts recently, bidding pressure is beginning to show signs of exhaustion, with the Dow Jones struggling to continue chalking in subsequent record highs with little to no pullback. The major equity index rose nearly 5.5% from the last swing low into the 40,000 major price handle, and price action is set to dig into the 42,000 level for the time being.

Dow Jones daily chart

Dow Jones FAQs

The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.

Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.

Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow’s theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.

There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.

 

Isenção de responsabilidade: Apenas para fins informativos. O desempenho passado não é indicativo de resultados futuros.
placeholder
Previsão de preço do Ethereum: ETH busca recuperação no segundo trimestre com o lançamento da rede principal da Pectra e o domínio do volume da DEXO Ethereum (ETH) subiu 5% na terça-feira, iniciando o segundo trimestre com uma nota positiva, depois de ter apresentado seu pior desempenho no primeiro trimestre do ano passado.
Autor  FXStreet
4 Mês 02 Dia Qua
O Ethereum (ETH) subiu 5% na terça-feira, iniciando o segundo trimestre com uma nota positiva, depois de ter apresentado seu pior desempenho no primeiro trimestre do ano passado.
placeholder
Ouro cai das máximas antes do Dia da Liberação de TrumpOs preços do ouro recuaram na terça-feira, com os investidores realizando lucros, aguardando o Dia da Liberação, em 2 de abril, nos EUA, um evento em que o presidente Donald Trump deverá anunciar tarifas adicionais com o objetivo de melhorar o desequilíbrio do déficit comercial.
Autor  FXStreet
4 Mês 02 Dia Qua
Os preços do ouro recuaram na terça-feira, com os investidores realizando lucros, aguardando o Dia da Liberação, em 2 de abril, nos EUA, um evento em que o presidente Donald Trump deverá anunciar tarifas adicionais com o objetivo de melhorar o desequilíbrio do déficit comercial.
placeholder
Previsão de preço do Solana para abril de 2025: traders de SOL correm risco de reversão para $120 à medida que a FTX inicia reembolsos de $800 milhões em 30 de maio.O preço da Solana se consolidou abaixo de $130 na terça-feira, enfrentando ventos contrários crescentes em abril, à medida que os investidores ficam cautelosos com as iminentes vendas pela FTX.
Autor  FXStreet
4 Mês 02 Dia Qua
O preço da Solana se consolidou abaixo de $130 na terça-feira, enfrentando ventos contrários crescentes em abril, à medida que os investidores ficam cautelosos com as iminentes vendas pela FTX.
placeholder
A China enfrenta tarifas recíprocas "gentis" dos EUA, apesar dos esforços anteriores para negociaçõesNa quarta -feira, Donald Trump declarou 34% de tarifas sobre as importações chinesas, chamando -as de tarifas recíprocas "com desconto", apesar das tentativas anteriores da China de evitar tarefas mais altas. O anúncio veio durante o que ele rotulou como "Dia da Libertação", quando apresentou um plano para aplicar tarifas de linha de base de 10% a todos os países e taxas mais altas em países selecionados. Trump descreveu […]
Autor  Cryptopolitan
Ontem 01: 29
Na quarta -feira, Donald Trump declarou 34% de tarifas sobre as importações chinesas, chamando -as de tarifas recíprocas "com desconto", apesar das tentativas anteriores da China de evitar tarefas mais altas. O anúncio veio durante o que ele rotulou como "Dia da Libertação", quando apresentou um plano para aplicar tarifas de linha de base de 10% a todos os países e taxas mais altas em países selecionados. Trump descreveu […]
placeholder
O ouro se mantém próximo ao recorde histórico, com atenções voltadas para o anúncio de tarifas de TrumpO preço do ouro estende seus ganhos na quarta-feira, permanecendo próximo aos recordes históricos enquanto os participantes do mercado aguardam os planos tarifários do presidente dos EUA, Donald Trump, por volta das 20:00 GMT.
Autor  FXStreet
Ontem 02: 19
O preço do ouro estende seus ganhos na quarta-feira, permanecendo próximo aos recordes históricos enquanto os participantes do mercado aguardam os planos tarifários do presidente dos EUA, Donald Trump, por volta das 20:00 GMT.
Produtos relacionados
goTop
quote