Dow Jones Industrial Average sheds a quarter of a percent on sluggish Monday


  • The Dow Jones grappled with the low end to kick off the trading week.
  • US PMI activity figures came in better than expected, but still in contraction territory.
  • Markets are gearing up for another print of key NFP jobs figures this week.

The Dow Jones Industrial Average (DJIA) knocked lower on Monday, falling off-balance after US Purchasing Managers Index (PMI) figures came in better than anticipated but showed US business activities are still on the low side of expectations. The Dow Jones recovered into an off-kilter stance, grappling with the day’s opening bids, but the major equity index is still tilted toward the downside just south of the 45,000 handle.

US ISM Manufacturing PMI business activity survey results rose to a five-month high of 48.4 in November, rising from October’s print of 46.5 and beating the median market forecast of 47.5. Despite the upswing in indexed respondent expectations, ISM Manufacturing PMI figures have remained below the key 50.0 level since April, keeping investors leery about the strength of the broader US economy below the surface figures.

ISM Services PMI figures for November will print later in the week, and there is plenty of preview data in US employment figures before Friday’s Nonfarm Payrolls (NFP) print. JOLTS Job Openings for the month of October will print on Tuesday, with ADP Employment Change slated for Wednesday. Weekly Initial Jobless Claims will round out the labor preview prints on Thursday.

Dow Jones news

Despite an overall upbeat tone in equities on Monday, most of the Dow Jones index was stuck in red territory for the day. Two-thirds of the DJIA is set to end Monday lower than they started, with losses led by Amgen (AMGN), which fell 1.6%, backsliding to $278 per share. Declines in the banking sector also sent JPMorgan (JPM) lower, which eased 1.3% to fall below $250 per share.

Elsewhere on the Dow Jones, Amazon (AMZN) found extra room on the upside as Black Friday and Cyber Monday shoppers pile into the online retail platform.

Dow Jones price forecast

Bullish moment has drained out of daily candlesticks on the Dow Jones, with price action battling for a foothold just below 45,000. The major equity index tested the key major handle several times this week, but bidders have run out of gas in the near-term. Despite easing buying pressure, downside momentum remains incredibly limited, with sellers struggling to make headway back toward 44,500.

Some form of a pullback should be expected on the charts after the Dow Jones put in its best single-month performance of 2024 in November. The DJIA rose over 7.5% MoM, taking the Dow to nearly a 20% gain YTD.

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.

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD remains bid around 1.1200, USD melts on tariff concerns

EUR/USD remains bid around 1.1200, USD melts on tariff concerns

EUR/usd maintains its bullish stance well in place on Thursday, reaching the 1.1200 barrier and beyond on the back of intense selling pressure on the US Dollar, fuelled by concerns over the impact of Trump's tariffs on the US economy.

EUR/USD News
GBP/USD settles around 1.2950 on weaker Dollar

GBP/USD settles around 1.2950 on weaker Dollar

GBP/USD advances markedly and extends its breakout of the 1.2900 hurdle amid global trade war jitters and a severe sell-off in the Greenback, which was exacerbated following news of 145% US tariffs on China.

GBP/USD News
Gold resumes record rally, reaches $3,175

Gold resumes record rally, reaches $3,175

Gold extended its record rally on fresh tariff-related headlines, trading as high as $3,175 a troy ounce in the American session. The White House confirmed 35% levies on Mexico and Canada, 145% on Chinese imports, resulting in a fresh round of USD selling and pushing XAU/USD further up.

 

Gold News
Cardano stabilizes near $0.62 after Trump’s 90-day tariff pause-led surge

Cardano stabilizes near $0.62 after Trump’s 90-day tariff pause-led surge

Cardano stabilizes around $0.62 on Thursday after a sharp recovery the previous day, triggered by US Donald Trump’s decision to pause tariffs for 90 days except for China and other countries that had retaliated against the reciprocal tariffs announced on April 2.

Read more
Trump’s tariff pause sparks rally – What comes next?

Trump’s tariff pause sparks rally – What comes next?

Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners. 

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025