Republicans in the US Senate have unveiled a proposal to spend an additional $1 trillion to fight the economic impact caused by the coronavirus pandemic. This includes $100 billion for schools and payments of $1,200 to most American citizens. The plan is also set to cut emergency unemployment benefits by two-thirds.
This brings the total stimulus package to more than $2.4 trillion. However, Democrats have already argued that the additional proposal is not enough causing a clash between both parties, less than 100 days away from the US Presidential election.
The US dollar rose slightly in the European session after the unveiling of the additional stimulus plan. This also placed pressure on US stock market indices which saw small declines in early trading.
Did you know you can speculate on the price of stock market indices using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!
The Democratic speaker of the House, Nancy Pelosi, has already called for negotiations with Republican leaders to find a compromise as they state the additional measures are still "inadequate". Most analysts believe a deal may not take shape until mid to late August which could be worrying for the Federal Reserve who are eager for a fiscal response to deal with the impact of the coronavirus.
US Federal Reserve chairman Jerome Powell is due to give a press conference on Wednesday 29 July at 19.30 BST.
How to trade the Dow Jones 30 stock market index
If you are feeling bullish or bearish on US stock indices you can speculate on its price direction using CFDs (Contracts for Difference). This allows you to trade long and short a market. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in Dow Jones at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, DJI, Monthly - Data range: 1 July 2006 to 28 July 2020. Please note: Past performance is not a reliable indicator of future results.
How will you be trading it?
One way is to make sure you have access to some of the best training tools in the business. Did you know that you can access the Technical Insight indicator directly from your web browser in the Admiral Markets Traders Room under Premium Analytics?
Source: Admiral Markets Traders Room Premium Analytics
This FREE indicator provides actionable trading ideas on a wide range of different markets! You can also download it to your desktop trading platform if you prefer. Get started with it today, completely free by clicking on the banner below:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2.Any investment decision is made by each client alone whereas Admiral Markets UK Ltd (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3.With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
5.Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
6.Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7.Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.