Select Language

Dow Jones Industrial Average roils on renewed tariff threats

Breaking news

Dow Jones Industrial Average roils on renewed tariff threats

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.04.08 02:37
Dow Jones Industrial Average roils on renewed tariff threats

update 2025.04.08 02:37

  • The Dow Jones is heavily battered on Monday as trade war continues to weigh.
  • President Trump ramped up trade war threats, promises more tariffs on China.
  • Equity recovery on possible tariff extensions evaporated early.


The Dow Jones Industrial Average (DJIA) whipsawed sharply on Monday, kicking off the new trading week with a tumultuous opening volley. The Dow Jones opened the week over a thousand points below Friday's close, and continuing to decline below the 37,000 level for the first time since December of 2023 as the tariff rout continues.

It's no use, Mr. Xi - it's tariffs all the way down

Investor sentiment rapidly surged on rumors that the Trump administration was considering a 90-day tariff extension, sending equities higher and pinning the DJIA into the 39,000 level. United States (US) President Donald Trump quickly took to social media to declare that not only were the rumors false, but that Donald Trump intends to issue an additional 50% tariff to take effect on April 8 aimed at China. The fresh tariff threats is in response to a retaliatory 34% tariff on US goods issued by China, which itself was targeted by a 34% "reciprocal" tariff by the US last week, which is also set to take effect on April 9.

Fresh tariff threats sent the Dow Jones tumbling back to 37,500, wiping out Monday's brief rumor-fueled recovery rally. US equity indexes are down sharply across the board, with the Standard & Poor's 500 (S&P) megacap index tumbled another 1.3%, falling to 5,000. The tech-heavy Nasdaq Composite also fell 0.9%, shedding 140 points to test below 15,500.

Stock news

Despite a general decline in market sentiment, key tech players are still finding gains on Monday. Super Micro Computer (SMCI) rallied 10% to $33 per share as the server rack solution provider recovers from a leadership shakeup, and AI rally darling Nvidia (NVDA) rose 3% to $97 per share. Physical product merchants took a hit on tariff threats, with Nike (NKE) falling 5% and sliding below $55 per share, while China-reliant tech manufacturer Apple (AAPL) tumbled 4.2% to fall below $181 per share.

Read more stock news: Alibaba slides 10% after Trump threatens to raise China tariff

Dow Jones price forecast

Despite a desperate low-end recovery, the Dow Jones remains buried deep in bear country. Price action is stuck near technical levels not seen since early 2024, trading down around 16% from record highs set last December just north of 45,000.

Monday's technical bullish rejection from the 37,000 handle could see an increase in near-term recovery bidding. However, the Dow Jones is still well below the 40,000 major price level, and the 200-day Exponential Moving Average (EMA) is stuck near 42,000, marking out plenty of areas for bulls to lose control once again if a recovery continues.

Dow Jones daily chart

Dow Jones FAQs

The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.

Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.

Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow's theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.

There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.


Date

Created

 : 2025.04.08

Update

Last updated

 : 2025.04.08

Related articles


    Show more

    FXStreet

    Financial media

    arrow
    FXStreet

    FXStreet is a forex information website, delivering market analysis and news articles 24/7.
    It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
    Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

    Was this article helpful?

    We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
    We are also looking for writers with extensive experience in forex and crypto to join us.

    please contact us at [email protected].

    Thank you for your feedback.
    Thank you for your feedback.

    Most viewed

    US Chamber of Commerce considering a lawsuit to block new Trump global tariffs

    The US Chamber of Commerce is considering bringing the tariff battle to court, and some of its largest members are urging it to do so.
    New
    update2025.04.08 08:24

    USD/CAD softens below 1.4250 as investors ramp up bets on Fed rate cuts

    The USD/CAD pair weakens to near 1.4240, snapping the two-day winning streak during the late American session on Monday.
    New
    update2025.04.08 08:05

    USD/CHF stabilizes near 0.8600 after volatility, tariffs and recession fears support USD

     The USD/CHF begins Tuesday's Asian session slightly lower, following a wild trading day on Monday, which saw swings within the 0.8450-0.8673 range, and ended virtually unchanged. At the time of writing, the major trades at 0.8588, down 0.02%.
    New
    update2025.04.08 07:35

    NZD/USD Price Analysis: Kiwi dips toward 0.5550 as bearish momentum intensifies

    The NZD/USD pair continued its slide on Monday ahead of the Asian session, with the Kiwi dipping toward the 0.5550 area.
    New
    update2025.04.08 06:50

    AUD/JPY Price Analysis: Aussie dips toward 88.50 as bearish momentum persists

    The AUD/JPY pair extended its soft tone on Monday ahead of the Asian session, easing toward the 88.50 area. Despite a mild daily decline, the pair remains entrenched in a broader downtrend, trading well beneath its key moving averages.
    New
    update2025.04.08 06:02

    Silver Price Forecast: XAG/USD rebounds toward $30 as bulls defend key support

    Silver price sellers failed to decisively clear support at $28.75 daily, and buyers stepped in near yearly lows of $28.33, pushing the grey metal's price back above $29.80 with traders eyeing the $30.00 mark. At the time of writing, XAG/USD trades at $29.89, up 0.89%.
    New
    update2025.04.08 05:34

    Australian Dollar extends slump toward 0.6000 as tariff anxiety deepens in Monday trade

    The AUD/USD pair remains under sustained pressure during Monday's American session, holding near the 0.6000 zone after a short-lived rebound in Asia.
    New
    update2025.04.08 05:31

    Gold price sinks below $3,000 as USD surges, tariff turmoil stirs recession fears

    Gold (XAU) price prolongs its agony and plummets by over 2% on Monday as investors seeking safety bid the US Dollar, with US trade policy fueling speculation of a global recession.  XAU/USD trades at $2,971, its lowest level since mid-March, below $3,000.
    New
    update2025.04.08 04:40

    Canadian Dollar continues to churn amid tariff woes

    The Canadian Dollar (CAD) whipsawed to kick off the new trading week, briefly rising after the US Dollar (USD) took a fresh beating on rumors of a possible tariff extension from the Trump administration.
    New
    update2025.04.08 03:59

    Forex Today: Trump's tariffs remain in centre stage ahead of US CPI

    The Greenback added to Friday's recovery and climbed to three-day highs on the back of the intense safe-haven demand in response to unabated trade tensions following President Trump's tariffs. 
    New
    update2025.04.08 03:52

    Disclaimer:arw

    All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

    The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

    • Facebook
    • Twitter
    • LINE

    Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

    I agree
    share
    Share
    Cancel