US30, also known as Dow Jones index, Wall Street 30 index, DJ30, Dow Jones 30, is one of the oldest US indices. JustForex offers traders to trade not only in currency pairs but also in indices, US30 in particular. So, you can start US30 trading right now. Before that, we recommend you to get acquainted with the information about what kind of index it is and what factors influence its movement.
The editor of The Wall Street Journal and the founder of Dow Jones&Company, Charles Dow, created US30 to track the development of American stock markets.
In the beginning, US30 was the arithmetic mean value of stock prices of the 12 largest USA companies. Now the index covers the 30 largest companies in the USA. These are large companies and manufacturers such as Apple, Coca Cola, Nike, Microsoft, etc. The index is considered to be the simplest indicator of the current state of the US economy. The list of companies, on which US30 is based, may change. The editors of The Wall Street Journal are reviewing and updating this list basing on the situation in the stock market.
The index is based on Dow’s theory of market analysis using average stock quotes of large companies. It is believed that the overall market trend is positive if one of these averages rises above the previous local peak, followed by a similar increase in the second indicator. When both indicators fall below the previous local minimum, this confirms the general tendency to decline. This theory is the basis for predicting future changes in the stock market.
Dow Jones is influenced by world events, natural disasters, wars, political instability, and economic news. When trading the US30, investors should keep track of current events and predict market reactions.
US Wall Street 30 is a price-weighted index. This means that stocks with a higher value have a stronger effect on the average ratio than stocks with a lower value. In this regard, experts consider the Dow Jones an insufficiently accurate indicator of the market. By the way, the index covers too few companies to assess the state of the stock market as a whole. Therefore, it is often used together with the S&P 500 index for greater objectivity.
With JustForex, you can trade US30 5 days a week from Monday to Friday. The stock market is closed for the weekend. Please also note that on some world holidays, for example, Labor Day in the USA, the stock market may not work. We write about all the changes in the trading schedule and trading hours in our news. Keep updated!