Dow Jones index is a stock index of the American industrial industry, which can represent the development of the American industry to a certain extent, and can be used as a reference index for the future situation of ICBC in the United States. What is the impact of the Dow Jones index on the stock market?
The Dow Jones index covers four industrial stock indexes, namely, the Dow Jones industrial average, the Dow Jones Transportation Average, the Dow Jones Utility Average, and the Dow Jones composite average. But when we talk about the Dow Jones index, we usually refer to the Dow Jones industrial average.
In the Dow Jones index, the Dow Jones industrial average is calculated based on the price of 30 large industrial stocks in the U.S. stock market. However, it is doubted by many people in the current market because it does not consider the stock weight and other issues. It is believed that the Dow Jones index is not convincing in theory. But this does not affect the Dow's position in the world's securities history.
Because the industry represented by the Dow Jones index is a more traditional industry, the company's operation is relatively stable, and the coverage of 30 industrial stocks is not small, so to some extent, the Dow Jones index can represent the industrial development of the United States.
So what is the impact of the Dow on the stock market? The impact of the Dow Jones index on the stock market is basically the trend implication impact. Because the economies of various countries and industries are interrelated, when the American industrial economy is developing upward, the data displayed by Dow Jones index shows that the current American industrial development is good and the industrial environment is loose, which will correspondingly lead to the improvement of the industrial related industries, and investors will be attracted to invest funds. When the Dow Jones index, as a representative indicator of American industrial data, rises, the stock market of other countries other than the United States, according to the trend of American stock market, will correspondingly think that the market of the United States is going well, and the economy of countries with greater economic ties with the United States may also be going well, so it may drive the market of other countries to rise.
But because the Dow Jones index is not affected by stock weight, the industry data displayed by the Dow Jones index is actually more affected by high price stocks, which makes the Dow Jones index has been questioned by market participants. The S & P index and Nasdaq index, which are named after the Dow Jones index, are more convincing.
Generally speaking, the Dow Jones industrial average may be the first of the four Dow Jones Industrial Average groups. NASDAQ (National Association of Securities Dealers Automated Quotations) is the English abbreviation of the name of the automatic quotation system established by the National Association of securities dealers in 1968. NASDAQ is characterized by the collection and issuance of quotations from securities firms trading non-listed stocks over the counter. Nasdaq composite index is a stock price average index reflecting the changes of the Nasdaq stock market, with a basic index of 100.
Difference: Dow Jones index is a representative company in traditional industries. Generally speaking, the NASDAQ industrial index prefers high-tech companies. The latter is an innovative model with more potential for development.
Dow Jones futures are based on the Dow Jones Industrial Average Index. The Dow Jones index system includes Dow Jones's global stock index, Dow Jones healthcare provider sub-index, Dow Jones medical products sub-index, Dow Jones pharmaceutical sub-index, Dow Jones stock 50 and other stock indexes. The most important and well-known index is Dow Jones Industrial Average index Jones industrial average is able to reflect the global industrial and commercial stock price level referred to as the Dow Jones index.
Dow Jones index is one of the most important concepts and signs in the American stock market. It is also widely used in the global stock market. In the Dow Jones index, 30 stocks are taken as index components. Dow Jones index futures are divided into three types, namely, contracts of small Dow Futures (code YM); contracts of medium Dow Futures (two codes are disclosed: DJ is the trading code of outcry, and electronic trading agent is the trading code of outcry Code: ZD); large Dow futures contract (Code: DD). The trading time of small Dow index futures is from Sunday to Friday, from 6:15 p.m. to 4:00 p.m. the next day. The contract months of small Dow futures are March, June, September, and December, and the contract months are listed at all times of the year.
Please note, that the article is a part of BTCMEX Blog, the views and opinions expressed here are the contributing author’s only, and do not necessarily represent the views of the company.
Please feel free to find more articles here.