Dow Jones sheds almost a full percent, falls further away from 40,000.00. US Services PMI rose to a 12-month high, in a cautionary reminder of services inflation. Investors will be hoping for good news from Friday’s US Durable Goods Orders. The Dow Jones Industrial Average tumbled on Thursday, falling -380 points and tumbling below 39,300.00 as investors pullback in the face of declining hopes for a September interest rate cut from the Federal Reserve .
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. What is Dow Theory? 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 and the Dow Jones Transportation Average and only follow trends where both are moving in the same direction.
. One is to use ETFs which allow investors to trade the