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.

Know how to manage trading risks with risk management strategies.

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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Disclaimer

This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.

This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.

PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.