The number one most traded index in the market encountered a rejection at its resistance price level of 31255 during the Asian session. The bulls are currently struggling to break this resistance which would otherwise give way to higher levels, with the next target of 31377 marking the upper resistance level. However, the bears are gradually dominating. If they succeed, we might expect a retest of the lower support at 30783.
What is US30?
The US30, also known as Wall Street 30 or Dow Jones 30 (DJ30), is one of the most traded and widely recognized stock indices today. It comprises the 30 most valuable companies in the US. This index is highly price-weighted. This means that rapid price changes in any individual company stock consisting of this index can impact immediate prices. Also, higher-priced stocks making up this index exert the most significant influence on US30.
How is the price of the US30 index calculated?
The immediate price of the US30 index is calculated by adding up the prices of 30 different stocks that make up the US30 and divided by the Dow divisor. The result becomes the current price of the US30 index.
Often companies with the largest market capitalization exert more influence on the US30. Investors follow these companies’ daily events and business deals as the outcomes always influence the US30.
The companies with the most considerable influence on US30 are Boeing, 3M, Chevron, Apple, Goldman Sachs, Visa, and Home Depot.
List of Stocks that make up US30
The thirty different stocks that make up the US30 are:
3M, Goldman Sachs, Home Depot, JP Morgan Chase, Coca-Cola, Disney, Merck, Microsoft, Nike, Johnson & Johnson, McDonald’s, American Express, Amgen, Apple, Boeing, Caterpillar, Chevron, Cisco Systems, Dow, Gamble, IBM, Intel, Salesforce, Travellers, UnitedHealth, Visa, Walgreens, Walmart, Procter, and Honeywell.
What are the factors that influence the US30?
The US30 is affected by several economic events that affect the US dollar and the economy. These factors include:
- Monthly Jobs Report (NFP): Positive yields from the job reports released during the NFP every first Friday of the month can broadly impact the US30. When there is a decrease in the unemployment rate through additional job creation, more investors will come in to invest in the US economy, and we can expect a rise in the US30.
- Fiscal Policies: Often, the government taxation policies determine the rate of investors that comes into the country. Strict government policies and higher taxes scare investors away, and the price value for the US30 will be expected to drop.
- Monetary Policies: The monetary Policies such as interest rates hike; could affect the US30 negatively. The US30 tends to be avoided similar to risky assets when the interest rate is hiked and would move to invest in bonds and other less risky investments with a higher return.
- Political news: Very often, political news such as business proposals and new trade agreements with international companies could affect the US30 positively. Investors always watched out for new business proposals to bring investors into the country.
Is US30 a good investment package?
The US30 is today’s oldest and most traded index in the forex market. It has become the investors’ favourite based on its volatility and fair stability. Many investors seeking the opportunity to invest in the US stock market have found the US30 satisfying this quest. Thus, by trading the US30, investors tend to profit from the rise and dwindle the US economy by making accurate predictions.
Where can I trade US30?
The best place to trade the US30 is on ATFX global forex trading platform. Trading US30 using this broker offers investors greater security for their investment. Also, many traders consider ATFX the best broker for trading the forex market as they provide the highest leverage for trading, which helps traders to maximise their profits.
Factors considered while choosing stocks listed in the US30.
Traditionally, stocks that make up the US30 are selected from the 500 securities included in the S&P 500 Index, except for the transportation and utility stocks. Added to this, before any stock can be added to the list of the US30, it must fulfil the following standards:
- Must be a registered US stock with its headquarters in the United States.
- Have the highest market capitalization compared to other stocks.
- Yield high revenue annually for the government.
- Have many investors.
- Existed for at least two years.
