Dow Jones Today: Latest News and Analysis to Keep You Ahead of the Market
This story originally appeared on nexusediciones
The stock market is a volatile beast. Even the most cautious investors can expect their share of ups and downs. However, these upswings can be even more intense than the downs. For example, the Dow Jones today surged by 1.5% over the course of a single day a few times in the past century. That’s a huge swing for investors to handle.
To help you keep up with the latest market news and analysis, we provide you with regular updates on the major stock market news stories. Keep reading to learn more about the most recent updates, analysis, and trends in the stock market.
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Fear and Greed Index
The Fear and Greed index was created by the financial industry to help investors gauge market sentiment. The index is calculated by looking at the VIX, a key market metric that measures investor fear, and the daily price change of the S&P 500.
The VIX shows investors’ level of fear by gauging the demand for protection from further market losses. When the VIX rises, investors demand protection; when it falls, investors offer protection. The S&P 500’s daily price change is taken into account to gauge how investors are feeling about the overall health of the stock market.
To calculate the Fear and Greed index, we simply look at the VIX and daily price change of the S&P 500. Anything that is over 50 is considered high fear, and anything below 50 is considered low fear. Anything in the middle is considered neutral. The Fear and Greed index is a good indicator of investor sentiment, so it is worth paying close attention to when trading in the stock market.
The Stock Market is Extremely Volatile
The stock market is extremely volatile, and not all years are created equal. A few years ago, the market was very slow and steady, but now it is much more volatile. The most volatile months for the Dow are January, March, and April. The least volatile month is October.
The stock market can be very unusual and unpredictable, especially during the most volatile months of the year. This means that it is crucial that you understand the market’s volatility before you invest. It’s not enough to simply buy a diversified portfolio at the beginning of the year. You need to be prepared for the wild swings that can occur at any moment.
Trade Wars and Tariffs
One of the most surprising and important stock market updates came out of the ongoing trade wars between the United States and China.
The United States and China have been involved in a trade war for months, with both countries imposing tariffs on one another’s exports. However, the trade war is heating up as both countries have announced that they will impose tariffs on an additional $300 billion worth of goods from the other country.
This is great news for U.S. consumers, but it has caused some serious concern for investors. With so many tariffs and retaliatory tariffs, there is no clear outcome for investors. This uncertainty is a major concern for investors, and it may be the biggest stock market issue that faces us right now.
Bitcoin Mania and Bubble Fears
For more than a year now, bitcoin has dominated the headlines. Some analysts have even declared that bitcoin has surpassed gold as the world’s most important store of value. The main reason for this attention is that bitcoin is decentralized and unregulated. As such, it is a popular option for investors who want to escape the oversight of the government and big banks.
However, investors are now beginning to worry that bitcoin’s bubble may be bursting. The price of bitcoin dropped by a third after reaching a record high of nearly $20,000 in December. Since then, bitcoin has dropped even further, and it is currently trading at around $6,700.
Many experts don’t believe that the price drop will be anything but temporary. However, when investors are worried about the sustainability of a bubble, it is a good sign that it could be time to sell some stock.
Major Stock Market Updates
– China warns that trade war will get worse- Bitcoin drops by a third after a record high- Stock market hits record highs- Fear and Greed index hits high fear level- Bottom line
Since the beginning of the year, the stock market has been on a tear, surging by more than 1,000 points since the beginning of the year. That’s a highly impressive gain, and it has investors optimistic about the future of the economy.
The main reason for this optimism is that investors believe that the trade war will come to an end soon. With the threat of even more tariffs hanging over the stock market, investors are worried that the trade war could escalate into a full-scale global financial crisis.
Bottom Line
The stock market is a volatile beast, hence the best stocks to buy now are those that fight volatility and guarantee steady growth. Even the most cautious investors can expect their share of ups and downs of the major stock indices. However, with Dow Jones today trading at $34,548, these upswings can be even more intense than the downs.
To help you keep up with the latest market news and analysis, we provide you with regular updates on the major stock market news stories. Keep reading to learn more about the most recent updates, analysis, and trends in the stock market.