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Dow Jones Industrial Average ($INDU) Index Forecast: Up 1.8% Today

Morpher AI identified a bullish signal. The index price may continue to rise based on the momentum of the good news.

What is Dow Jones Industrial Average?

The Dow Jones Industrial Average (INDU) is a stock market index that measures the performance of 30 large publicly-owned companies trading on the New York Stock Exchange and the NASDAQ. Today, the INDU experienced a strong bullish movement, with a 1.22% increase.

Why is Dow Jones Industrial Average going up?

INDU index is up 1.8% on Jan 22, 2026 14:40

  • The bullish movement in the INDU can be attributed to President Trump's decision to withdraw threatened tariffs on eight European allies, leading to a rally across major indexes.
  • The historic sell-off in Japan's bond market and rising U.S. Treasury yields may have also contributed to the positive sentiment in the U.S. stock market, as Japanese investors potentially redirect capital to the U.S.
  • Despite concerns about high valuations and growing investor skepticism reflected in the record-high money market funds, the market seems to have responded positively to the news of tariff withdrawals and global market dynamics.
  • President Trump's track record of delivering strong annualized returns in the stock market, coupled with ongoing geopolitical and economic factors, continues to influence market movements and investor sentiment.

INDU Price Chart

INDU Technical Analysis

INDU News

TACO Trade Wins Again, Trump Withdraws EU Tariff Threat

President Trump withdrew threatened 10-25% tariffs on eight European allies after a meeting with NATO Secretary General Mark Rutte, reversing course from Tuesday's market turmoil. The reversal triggered a rally across major indexes, with the Dow Jones up 1.22% and Nasdaq 100 up 1.18%, validating the 'TACO Trade' (Trump Always Chickens Out) strategy that bets on Trump backing down from tariff threats.

https://www.benzinga.com/markets/equities/26/01/50056954/taco-trade-wins-again-trump-withdraws-eu-tariff-threat?utm_source=benzinga_taxonomy&utm_medium=rss_feed_free&utm_content=taxonomy_rss&utm_campaign=channel

0 News Article Image TACO Trade Wins Again, Trump Withdraws EU Tariff Threat

Japanese Bond Market Sees Historic Sell-Off: What It Means For US

Japan's $7.6 trillion bond market experienced a historic sell-off driven by fiscal concerns and inflation worries, with the 10-year yield hitting its highest level since 1999 at 2.38%. This triggered a global ripple effect, pushing U.S. Treasury yields higher as Japanese investors—who own $1.2 trillion in U.S. Treasuries—may redirect capital home. The sell-off coincided with Trump's tariff threats over Greenland, contributing to declines in major U.S. equity indices and rising yields across European markets.

https://www.benzinga.com/markets/bonds/26/01/50027237/japanese-bond-market-sees-historic-sell-off-what-it-means-for-us?utm_source=benzinga_taxonomy&utm_medium=rss_feed_free&utm_content=taxonomy_rss&utm_campaign=channel

1 News Article Image Japanese Bond Market Sees Historic Sell-Off: What It Means For US

Wall Street's $7.8 Trillion Warning Has Reached a Deafening Tone -- but Are Investors Paying Attention?

Money market funds have reached an all-time high of $7.8 trillion, signaling growing investor skepticism about the stock market despite a strong three-year bull run. With the S&P 500's Shiller P/E ratio at 40.83 (second highest in 155 years), historically high valuations combined with capital flowing into ultra-safe assets suggest investors are concerned about risk-reward dynamics. However, the article notes that bull markets historically last significantly longer than bear markets, and the stock market has recovered from past crises.

https://www.fool.com/investing/2026/01/19/wall-st-78-trillion-warning-reach-a-deafening-tone/?source=iedfolrf0000001

2 News Article Image Wall Street's $7.8 Trillion Warning Has Reached a Deafening Tone -- but Are Investors Paying Attention?

Donald Trump Has Led Stocks to the 2nd-Highest Annualized Return of Any President Over 129 Years -- Can He Become No. 1?

Under President Trump's second term, the S&P 500 has delivered a 16.7% annualized return, the second-highest among all presidents since 1897. While favorable tax policies and AI growth have fueled gains, the article warns that historically high valuations (CAPE ratio at 155-year second-highest), potential AI bubble risks, and Federal Reserve divisions pose significant headwinds to maintaining these returns.

https://www.fool.com/investing/2026/01/18/donald-trump-stocks-2nd-highest-return-129-years/?source=iedfolrf0000001

3 News Article Image Donald Trump Has Led Stocks to the 2nd-Highest Annualized Return of Any President Over 129 Years -- Can He Become No. 1?

Is a Stock Market Crash Imminent in 2026 Under President Donald Trump? 155 Years of History Weighs In.

The article examines whether a stock market crash is imminent in 2026 under President Trump's second term. While the stock market performed exceptionally well during Trump's first term and in 2025, the Shiller P/E ratio has reached 40.72—near its all-time high of 44.19 from the dot-com bubble. Historically, whenever the CAPE ratio exceeded 30, it was followed by declines of 20-89%. However, the article notes that while a significant decline is expected, there's no evidence a crash is imminent. Long-term investors should benefit from the fact that bull markets last 3.5 times longer than bear markets, and the S&P 500 has delivered positive returns over every 20-year period since 1900.

https://www.fool.com/investing/2026/01/17/stock-market-crash-donald-trump-155-years-history/?source=iedfolrf0000001

4 News Article Image Is a Stock Market Crash Imminent in 2026 Under President Donald Trump? 155 Years of History Weighs In.

Dow Jones Industrial Average Price History

13.00.2026 - INDU Index was up 0.1%

  • A notable surge in the INDU index occurred today due to a rare buy signal from the century-old Dow Theory, as both the Dow Jones Industrial Average and Dow Jones Transportation Average hit new highs concurrently. This signal historically foreshadows robust returns in the S&P 500, reinforcing investor optimism.
  • Initial market uncertainty stemming from Janet Yellen's mention of a probe into Jerome Powell, the current Fed Chair, was allayed by Powell's defense of the Fed's autonomy and endorsement by former Fed Chairs and prominent economists, fueling the market's bullish upturn.
  • Despite concerns about a potential 2026 stock market correction under Donald Trump's presidency, the prevailing positive market sentiment fueled by the Dow Theory buy signal and strong historical returns seems to have overshadowed these worries, bolstering today's bullish trend in the INDU index.

22.00.2026 - INDU Index was up 1.8%

  • The bullish movement in the INDU can be attributed to President Trump's decision to withdraw threatened tariffs on eight European allies, leading to a rally across major indexes.
  • The historic sell-off in Japan's bond market and rising U.S. Treasury yields may have also contributed to the positive sentiment in the U.S. stock market, as Japanese investors potentially redirect capital to the U.S.
  • Despite concerns about high valuations and growing investor skepticism reflected in the record-high money market funds, the market seems to have responded positively to the news of tariff withdrawals and global market dynamics.
  • President Trump's track record of delivering strong annualized returns in the stock market, coupled with ongoing geopolitical and economic factors, continues to influence market movements and investor sentiment.

31.11.2025 - INDU Index was down 0.3%

  • The bearish movement in the INDU index today is linked to concerns over President Trump's global tariffs, leading to market volatility and uncertainty among investors.
  • Fed Chair Jerome Powell's caution about high equity valuations, notably the S&P 500's Shiller P/E ratio nearing historical highs, may have contributed to the negative sentiment in the market and the sell-off in the Dow Jones Industrial Average.
  • Despite the recent all-time high in the S&P 500 and potential for a Santa Claus rally, caution prevails among investors due to uncertainties surrounding trade policies and valuation levels, deterring a bullish sentiment in the INDU index.

17.11.2025 - INDU Index was down 0.6%

  • Investors might be selling off stocks in the Dow Jones index, including Chevron, Merck, and Coca-Cola, due to profit-taking or concerns about the overall market sentiment.
  • The focus on high-dividend stocks may not be resonating with investors today, leading to a bearish movement in the index.
  • The attractiveness of dividend stocks may have taken a back seat as market participants shift their focus towards other investment opportunities or risk-off sentiment.

13.10.2025 - INDU Index was down 0.8%

  • The Dow Jones Industrial Average had recently broken records, reaching all-time highs.
  • Investors showed optimism about the government shutdown nearing a resolution and favored traditional sectors over technology stocks.
  • Despite the positive outlook and recent highs, the index faced a notable bearish movement today, possibly due to profit-taking or a shift towards risk-off assets.

20.00.2026 - INDU Index was down 0.2%

  • The Dow Jones Industrial Average (INDU) is a stock market index that measures the performance of 30 large companies listed on stock exchanges in the United States. It is one of the most widely followed equity indices in the world.
  • There was a significant bearish movement in the stock market today, with the Dow Jones Industrial Average (INDU) experiencing substantial losses.
  • Concerns about historically high valuations, potential risks associated with an AI bubble, and increasing investor skepticism despite recent strong performance appear to be influencing market sentiment.
  • Internal disagreements within the Federal Reserve, along with tensions between President Trump and Fed Chair Jerome Powell, are contributing to uncertainty and potentially impacting market stability.
  • The market's negative sentiment and bearish movement in the Dow Jones Industrial Average today may be influenced by the perceived threat of hyperinflation resulting from authoritarian actions against the Federal Reserve Chair.

21.00.2026 - INDU Index was up 0.0%

  • A historic sell-off in the Japanese bond market, driven by fiscal concerns and inflation worries, led to a global ripple effect that pushed U.S. Treasury yields higher, redirecting capital flows and contributing to the bullish movement in the INDU index.
  • Growing skepticism among investors, evident through record-high money market funds, and concerns about historically high valuations may have also influenced the bullish market movement.
  • Favorable tax policies and AI growth under President Trump's administration have contributed to strong stock market returns, despite warnings of potential headwinds like high valuations and Federal Reserve divisions. Positive market sentiment towards Trump's policies might have further boosted the INDU index.
  • The lack of agreement within the Federal Reserve, with differing opinions on rate cuts and tensions with President Trump, poses a risk to market stability. Nonetheless, the positive outlook on Trump's policies and market performance likely overshadowed these concerns, propelling the bullish movement in the INDU index.

05.00.2026 - INDU Index was up 0.7%

  • The bullish movement in the INDU index today can be attributed to the positive market sentiment driven by the significant rebound in stock prices towards the end of 2025 and the overall recovery in the markets.
  • Despite concerns raised about potential headwinds in 2026, including Federal Reserve policies, high valuations, and historical market trends, investors seem to be focusing on the current momentum and positive economic indicators.
  • The market's reaction to past tariff policies, which initially caused volatility followed by rebounds, might have instilled confidence in investors that any potential challenges in 2026 could be navigated successfully.
  • Overall, the bullish movement in the INDU index today reflects a mix of optimism, resilience, and a forward-looking approach by market participants amidst the backdrop of potential uncertainties.

29.08.2025 - INDU Index was down 0.0%

  • Investors brushed off concerns of a government shutdown, leading to a rise in stock market futures.
  • Gold prices soared amidst the market uncertainty, indicating a flight to safety by investors.
  • Economists cautioned about the potential long-term effects of a prolonged shutdown, highlighting the risks of a 'data blackout' that could impact economic analysis and forecasting.
  • The bearish movement in the INDU index could be attributed to the uncertainty surrounding the looming government shutdown and the potential economic repercussions, despite the initial optimism displayed by investors.

15.00.2026 - INDU Index was up 0.7%

  • The INDU index's bullish movement today can be linked to:
  • Endorsement from top central bankers worldwide standing in solidarity with Federal Reserve Chair Jerome Powell, underscoring central bank independence's significance for financial stability.
  • The century-old Dow Theory giving off a rare buy signal, signaling positive market sentiment and potential for robust returns.
  • Despite concerns regarding threats to Fed independence and a DOJ investigation into Powell's testimony, markets maintained stability with major equity indices hitting all-time highs, reflecting investor faith in the Fed's policy trajectory.
  • The surge of gold and silver to record levels during the market upheaval could also suggest a shift toward safe-haven assets, reinforcing the market's bullish trajectory.

30.11.2025 - INDU Index was down 0.7%

  • Today's downturn in the INDU index is linked to Fed Chair Jerome Powell's caution regarding the elevated valuation of equity prices, particularly referencing the S&P 500's Shiller P/E ratio nearing historical highs.
  • Powell's warning on potential market declines due to high Shiller P/E ratios surpassing 30 may have unsettled investors, prompting a market sell-off.
  • Despite the recent record levels of the S&P 500 and the potential for a Santa Claus rally, investors appear to be heeding Powell's advice and making adjustments to their positions, resulting in the bearish trend seen in the INDU index today.

14.09.2025 - INDU Index was down 0.1%

  • Observers believe that remarks from Powell regarding high stock market valuations and overvaluation indicators may have triggered a market sell-off.
  • Concerns rose among investors as historical metrics such as the Shiller P/E ratio and the Warren Buffett Indicator reached record levels.
  • Investors possibly viewed Powell's comments as a prompt to reassess investment strategies and decrease exposure to stocks, reflecting in the bearish movement in the INDU index.
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Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.