The US Wall St 30 – also referred to as the Dow Jones Industrial Average (DJIA) – is one of the oldest stock market indices. For traders, it continues to be one of the most popular with its high liquidity creating opportunities to generate lucrative returns. OANDA’s award-winning platforms allow you to trade the US Wall St 30 with attractive spreads and reliable execution.
What is the US Wall Street 30?
The US Wall Street 30 tracks the performance of the 30 largest publicly-owned companies in the United States. Unlike market capitalisation-weighted indices such as the DE30 or UK100, the US Wall Street 30 is a price-weighted index. Here, each of the constituent 30 stocks drives the index based on its price per share. The higher the price, the more it drives the index value.
Among the sectors represented in the US Wall Street 30 are financial services, pharmaceuticals and technology – with companies including Boeing, Microsoft, Visa and ExxonMobil.
How does the US Wall St 30 work?
As a price-weighted index, the performance of the 30 stocks on the US Wall St 30 can have an extensive impact on the entire US stock market. Trading takes place between New York Stock Exchange hours of 9.30am to 4.30pm weekdays (Eastern Time) – four hours behind GMT.
OANDA’s pricing for US Wall St 30 CFDs is based on future prices, which is influenced by feeds received from relevant exchanges. By reviewing ‘top of book’ prices, we calculate the midpoint price. In addition, OANDA also uses an automated adjustment schedule for the US Wall St 30.
What drives the Wall Street 30 price?
Domestic and international events can influence the Wall Street 30 price, which is a key reason why it is such a liquid – and popular – index for traders. The index is also often regarded as an indicator for the US economy, which is the largest in the world.
− Federal Open Market Committee policy decisions
− US economic data (employment or inflation rates)
− Political events in Washington and in other countries
− Shifting energy prices and supply/demand issues
US Wall Street 30 chart
Using OANDA’s real-time US Wall Street 30 chart can provide useful and beneficial insights into current or historical trends affecting trading positions. Updated to provide traders with the very latest conditions, the chart can help identify emerging trends at source – but it cannot be taken as a guarantee or prediction for future performance.
Q3 2020 Outlook
Q1 2020 was brutal on all major indices, including the US Wall St 30 or Dow Jones. After the worst first quarter ever in its history (23.2% decline), Q2 2020 proved to be of some respite.
The markets have recovered to a great extent in Q2, with the Dow rising over 30% from its lows of March 23. Optimism surrounding the re-opening of the US economy and quick fiscal measures taken by the government, led to optimism that could not be subdued by the widespread protests and riots in various US states. Although the market on the whole has been volatile, since June 1, the stock indices have rallied higher on account of positive US jobs data and retail sales figures for May 2020.
However, the worst is not over yet. The US economy seems to be in recession. Its GDP declined 4.8% in Q1 and might decline a further 50% in Q2, according to Atlanta Federal Reserve. While manufacturing is on the decline, personal consumption expenditure, which accounts for 68% of the US GDP, is expected to fall 58.1% in Q2. There are reports of rising coronavirus cases in many US states and China. Turmoil in the crude oil markets could lead to major decline in the US Wall St 30 in Q3. At the end of Q3, the index is expected at 24,868 points.
Economic Data to Watch Out for in Q3 2020
July 2, 2020/ August 5, 2020/ September 3, 2020: US Balance of Trade
With reduced manufacturing activity, the US trade deficit is expected to widen to $50 billion by August 2020. The figure could be worse if a second surge of COVID-19 leads to closure of businesses and factories.
July 2, 2020/ August 7, 2020/ September 4, 2020: US Non-Farm Payrolls Report
Against expectations of 8 million job cuts, the US economy added 2.5 million jobs in May 2020. However, the unemployment rate is still high at 13.3%. The unemployment rate is expected at 16% by the end of Q3. After that a rebound in hiring and decrease in furloughs is expected with increases in business activity.
July 16, 2020/ August 14, 2020/ September 16, 2020: US Retail Sales MoM
US retail sales increased 17.7% from the previous month, in May, beating expectations of an 8% increase. Unless a second wave of infections strikes, we could see positive figures in the months ahead.
July 29, 2020/ September 16, 2020: Interest Rate Decision by US Fed
The US Fed left the federal funds rate unchanged at 0%-0.25% in June 2020. The Chairman hinted that interest rates would remain steady at this level for some time, as recovery from the pandemic will be prolonged.
July 30, 2020/ August 27, 2020/ September 30, 2020: US GDP Growth QoQ for Q2 2020
The US GDP shrank 4.8% in Q1 2020. Expectations are rife regarding a more than 20% decline for Q2.
Q3 2020 Predictions: Political Events That Could Impact the US Wall St. 30
Rising tensions between the US and China could impact stock markets. By the end of Q3, the US will be gearing for the upcoming presidential elections in November. The markets could surge if a Trump victory seems likely.
Q3 2020 Predictions: Other Factors That Could Impact the US Wall St. 30
A surge of new coronavirus cases could push the US further into recession. Similarly, positive news on vaccine trials and manufacturing could help the markets surge.