Dow Jones Under Pressure Amid Trade Policy Uncertainty

Fundamental Analysis

* U.S. equities remain under selling pressure as heightened trade policy uncertainty weighs on investor sentiment. President Donald Trump’s proposal to double Canadian steel and aluminum tariffs to 50% has fueled risk-off sentiment, pushing the market closer to correction territory. Ontario Premier Doug Ford initially imposed a 25% surcharge on electricity exports to the U.S., prompting retaliatory measures from Washington. However, Ford later announced a temporary suspension of the surcharge following discussions with Commerce Secretary Howard Lutnick, creating additional uncertainty over the market’s direction.

Technical Analysis

*Technical Breakdown: The Dow Jones Index continues its bearish trajectory after breaking below a double-top formation. MACD signals growing downside momentum, while RSI at 30 suggests oversold conditions but remains below the midline.

* Resistance and Support: If bearish momentum persists, the index could decline toward the support level of 40,730. However, if selling pressure eases, a rebound toward the resistance at 42,000 may occur.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Any easing of trade tensions or a reversal in tariff policies could provide support for a market recovery.

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Monitoring

Watch for updates on U.S.-Canada trade policies, tariff negotiations, and broader risk sentiment in global equity markets for further directional cues, by following PU Prime’s market insights and daily financial news.

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