The market has witnessed the sharp drop of Dow Jones, as known as Dow Jones Industrial Average(DJIA), one of the major stock market indices. As the benchmark of stock markets, it made its authority by being setting as a reference. However, the oldest and authoritative index is suffering quiet lot in the last few months due to the changing economic environment, inflation or something happening in the stock market. Now let us see more about this drop and see the predictions about what this drop will go further.
What Is Dow Jones?
Dow Jones is a stock market index made up by 30 prominent companies listed on stock exchanges in the United States. First compiled in 1884 by the founder of the Dow Jones Company, Charles Henry Dow, it is an arithmetic average stock pricing index. It tracks 30 large, publicly-owned blue-chip companies trading on the New York Stock Exchange (NYSE) and Nasdaq.
How Hard Is Dow Jones Drop
Dow Jones is getting hit the hardest, dropping down more than 700 points earlier in the mid of July and off 570 at midday, although the major stock market indexes are also seeing steep losses in midday trading. Consequently fears mounted quickly that aggressive interest rate hikes by the Federal Reserve (Fed) could trigger a recession.
While spending much of this time above 34,000 points, the recent falls mean Dow Jones now trading almost 10% lower than it in June 2021. However, the longer-term performance of the Dow Jones is better than it used to be. However the fact is remaining in the face of us: US stocks have written their worst half in more than 50 years with the giant of indices Dow Jones drop. Then, we shall see some predictions made by experts about Dow Jones.
Predictions of Dow Jones Made by Experts
During the last 24 hours, it goes up 0.15% than it was before.
According to Trading Economics, it suggested Dow Jones could drop to 28246.66 in 12 months. Wallet Investor made predictions that the Dow Jones could be a “not so good long-term (1-year) investment”, for the index would very likely to plunge to 26,790.10 in a year. While some experts suggested the it could rebound some time and trade at 29,419.90 by the end of July. However, no predictions made further into the year of 2030.
To dive in some more specific and certain predictions about this drop, it shows at some certain points Dow Jones will bounce back and float in small range. And the certain point would be July, 2023. After that, it will go all the way up. Until that point is touched, it probably goes downside little by little.
Some experts warned that US stock market has further to drop. Investors cannot help but questioning how much further US stocks will slide this year. After all, after a protracted sell-off knocking Wall Street’s S&P 500 more than a fifth below its January peak, nothing can be said as good at nothing to worry about. Fears have intensified that the largest economy unity is about to dive in a recession.
Conclusion
This Dow Jones drop situation might keep going for a while for the recession and inflation is pushing in. They may stay elevated for another month or two. So fingers crossed, and Dow Jones hanging there. Keep in mind that analysis’ prediction is here for your reference and your decision to buy in or sell out mainly depends on your attitude to risk, your expertise in the market, the spread of your portfolio. Anyway, to sum up the prediction of Dow Jones, it might go down a bit, hit the bench, and bounce back. Investors may have to brace themselves for more volatility on the stock market until they are satisfied that the Fed has regained control over recession.
