The Dow Jones Industrial Average is a stock market index that tracks thirty of the largest, publicly traded companies in the United States. This includes Apple, Boeing, and Amazon.
These companies are leaders in a variety of industries, including tech, finance, healthcare, and consumer goods, and part of the reason the DJIA—known on trading platforms like Exness as the US30 index—is so popular is because it provides a benchmark for overall market performance in the US: if the US30 is rising, then the market is doing well.
There are many investors, however, who track the US30 index not because they want to invest directly in the US market, but because they want to make smarter decisions in emerging markets.
Doing this is all about managing risk, spotting opportunities, and formulating careful strategies, but through the US30, the art of getting it right has become easier, especially when it comes to gaining the confidence needed to back certain tactics.
So why is this the case, and how can you track the US30 index effectively to make the right calls?
US30’s relationship with emerging markets
Let’s start by examining why the US30 is so closely tied to emerging markets. Perhaps the most pressing reason is because many of the companies in the index have extensive global operations, meaning their performance directly affects international trade, supply chains, and investor sentiment.
When it comes to international trade, strong performance from US30 companies often translates into increased demand for goods and services, which is then sourced from emerging markets like India or Brazil.
For example, a surge in production by one of the biggest tech giants can drive exports of raw materials or components from India, which then boosts local economies and increases revenue for exporters, creating new investment opportunities for businesses and investors alike.
Supply chains, too, are relied upon by US30 companies, and that thereby extends into emerging markets.
These networks involve suppliers, manufacturers, distributors, and more, all of which provide critical components and labour essential to the operations of companies like Apple or Microsoft.
Any disruption – whether due to shifts in the US30 or regulatory changes – can therefore impact production timelines, costs, and employment in emerging markets, causing ripple effects that will determine certain investing decisions.
When it comes to investor sentiment, the same principle is true. Sure, a company like Apple is different to a company like Infosys, but movements in the US30 often signal broader confidence – or caution – in the global economy, with a rising index boosting optimism and a falling index triggering risk aversion.
Tracking the US30, then, allows investors in emerging markets to anticipate these shifts and adjust their strategies accordingly.
By observing each trend in the index, they gauge when to increase exposure to certain sectors, potentially hedging against risks or taking advantage of opportunities created by global market movements.
In essence, the US30 acts as a barometer for both economic conditions and investor confidence, providing valuable guidance for making more informed, smarter decisions.
How to track US30
This makes it a strong benchmark to monitor if you’re planning on investing in emerging markets, but doing so isn’t as easy as checking your phone and looking at the headlines.
If you want to really make the most out of it, you need to be analysing the chart and paying attention to all the necessary details.
To give an example, imagine the US30 has been steadily declining over several weeks, but then forms a reversal flag pattern on the chart, as can be seen on platforms such as Exness.
This pattern signals that the downward trend may be losing momentum and that a potential upward reversal could be coming, so for an investor in an emerging market, spotting it early could indicate that global investor confidence is about to improve.
Another example could be when the US30 shows a double top pattern – where the index reaches a certain high, pulls back, and then tests that same high again without breaking through.
For those unaware, this pattern often signals that upward momentum is weakening and a potential downward correction may be coming, so for an investor in an emerging market, recognising it could suggest caution, and prompt them to reduce exposure to riskier assets in anticipation of a shift.
Tracking and applying smartly
The key is to combine technical analysis with broader market context. Yes, we’ve just given those examples, but tracking the US30 effectively means not just spotting chart patterns like reversal flags or double tops, but also monitoring macroeconomic indicators, corporate earnings, and geopolitical news that could influence US markets.
Your job as an investor is to regularly update your chart, noting key support and resistance levels, and watching for trend confirmations before you make any decisions. By utilising this knowledge, you will be able to anticipate potential ripple effects and apply that knowledge more accurately to your own investments.
Again, let’s say certain geopolitical events have triggered uncertainty in US markets, causing the US30 to show signs of volatility.
By observing how the index reacts—whether it holds key support levels or starts forming bearish patterns—you can gauge the potential impact on emerging markets. From there, you can adjust your assets in emerging markets accordingly.
If the US30 signals sustained weakness, you might reduce exposure to riskier equities, while if it signals strength, you could selectively increase exposure to high-potential stocks or commodities that are likely to benefit.
Conclusion
This isn’t to say that tracking the US30 will automatically guarantee success in emerging market investments.
On the contrary, smart investment decisions require far more context, both in global market trends and local economic conditions.
It will also depend on your own initiatives as an investor, and your ability to analyse data and act proactively, rather than reactively.
But it does provide a valuable lens through which to view related trends and potential risks. The point is that the US30 can give you actionable insight for timing, allocation, and risk management.
All you have to do is monitor it effectively and integrate its signals smartly into your broader investment strategy!