Dow Jones futures dip as Trump's copper tariff hits investors' confidence

• Dow Jones futures drop 0.28% with Trump's copper tariffs weighing on risk appetite.
• Higher copper prices will affect all industries, increase inflation, and probably cause supply chain disruptions.
• On Wednesday, the Fed minutes heightened hopes of at least one rate cut in the next months.
  

Dow Jones Index Futures point to a negative opening on Thursday as investors' concerns about the consequences of Trump's copper tariffs to the US industry offset the positive impact of the dovish tilt observed in the FOMC minutes.

All the main Wall Street index futures are in the red today. The Dow Jones Industrial Average is showing the most significant drop, with a 0.23% decline, while the S&P 500 Index dips 0.18% and the Nasdaq technology index falls 0.13% at the time of writing.

Trade tariffs keep weighing on risk appetite

The risk-on mood seen on Wednesday seems to have vanished today, as investors come to terms with the potential impact of Trump's 50% tariff on copper products.  Higher copper prices will affect all industries, from the automotive to the construction and the sustainable energy sectors, ultimately boosting inflation and potentially causing supply disruptions.

On Wednesday, the minutes of the latest Federal Reserve meeting highlighted a deep division within the committee, with most policymakers seeing it as appropriate to cut interest rates at least once before the end of the year.

The Fed's dovish party believes that the inflationary impact of tariffs will likely be temporary and that longer-term inflation expectations will remain well anchored. A couple of officials were willing to cut interest rates at the next meeting.