Created
: 2025.11.03












2025.11.03 17:48
Dow Jones futures remain steady above 47,700 during European hours, with the S&P 500 futures and Nasdaq 100 futures gaining 0.11% and 0.19%, trading around 6,880 and 26,050, respectively, ahead of the opening of the United States (US) regular session on Monday.
US index futures show mixed performance amid market caution, driven by the recent comments from US President Donald Trump. However, US stocks gained ground due to continued momentum in artificial intelligence and the latest Federal Reserve (Fed) interest rate cut.
President Trump noted he plans to block China from accessing Nvidia's most advanced semiconductor technology. His remarks could reignite US-China trade tensions, which had eased after his meeting with Chinese President Xi Jinping last Thursday during the APEC Summit in South Korea. However, the market sentiment improves as the White House announced over the weekend that China will suspend extra export controls on rare earths and end investigations into US semiconductor firms.
During Friday's regular US session, the Dow Jones rose 0.08%, the S&P 500 gained 0.26%, and the Nasdaq 100 climbed 0.48%. US equities found support in October from a strong earnings season, with over 80% of S&P 500 companies beating expectations so far. Investors now look ahead to earnings from major firms this week, including Berkshire Hathaway, Palantir, AMD, Uber, and McDonald's.
Traders may remain cautious amid the prolonged US government shutdown, which is heightening economic concerns and delaying key data releases, including the monthly jobs report. The impasse has now stretched into its sixth week, with Congress deadlocked over the Republican-backed funding bill and no resolution in sight.
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.
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Created
: 2025.11.03
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Last updated
: 2025.11.03
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