- Summary:
- The Dow Jones Index is stuck near five-week lows as pressure mounts on equities markets amid
The Dow Jones Index continued to struggle near five-week lows on Tuesday on mounting pressure created by renewed global trade tariff concerns. The Index was down by 0.2% at the time of writing, with its level 43,363 points, a day after US President Donald Trump announced that tariffs against Canada and Mexico would go forward after the elapse of an initial 30-day pause.
Investors are jittery of the escalating scale of the tariff war, with the affected countries expected to retaliate. In addition, a new round of tariffs against automotives, pharmaceuticals and semiconductors are in the pipeline and set for action from April 2. That could draw in a higher number of countries, broadening the risk factors for the global economy.
The sour sentiment is spread across differerendt industries as seen by the sharp declines of key indicative indices. The Dow Jones Index (INDEXDJX: .DJI)and the S&P 500 are down by 2.6% and 2.4% respectively in the last month, while the Nasdaq has declined by 3.6% in the same period.
Meanwhile, US Consumer Index declined sharply in February from January’s 105.3 to 98.3, signaling potential trouble for the world’s largest economy. New Home Sales data will be out on Wednesday, and that will broaden the perspective on the US economy’s trajectory. Soft data from that front could add downward pressure on the Dow Jones Index.
Dow Jones Index Forecast
The Dow Jones Index pivot mark is at 43,810 points and action below that level signals control by the sellers. The index will likely move downward and find the first support at 43,200. An extended downward momentum could take action lower to the second support at 42,810.
Alternatively, moving above 43,810 points will shift the momentum to the upside. In that case, the first resistance is likely to be at 44,200 points, beyond which the downside narrative will be invalid. Also, such momentum could strengthen the momentum and result in further gains to test the second resistance at 44,690 points.
