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Dow Jones futures slip as markets eye Trump-Zelenskyy meeting, expanded US tariffs

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Dow Jones futures slip as markets eye Trump-Zelenskyy meeting, expanded US tariffs

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New update 2025.08.18 17:32
Dow Jones futures slip as markets eye Trump-Zelenskyy meeting, expanded US tariffs

update 2025.08.18 17:32

  • Dow Jones futures struggle due to market caution ahead of Trump-Zelenskyy meeting.
  • The Trump administration expanded 50% tariffs on steel and aluminum imports, adding 407 new product codes.
  • US stocks indexes hit fresh record highs as recent US data support the case for a Fed rate cut in September.

Dow Jones futures fall during early European trading on Monday, ahead of the opening of North American markets, trading below 45,000, down by 0.2%. Moreover, S&P 500 futures decline 0.1% to trade near 6,450, while Nasdaq 100 futures remained subdued near 23,800.

US stock futures struggle ahead of a meeting between US President Donald Trump and Ukrainian leader Volodymyr Zelenskyy due later in the day. However, market sentiment could improve if there are any positive developments toward ending the Ukraine-Russia war. Moreover, Trump administration has broadened its 50% tariffs on steel and aluminum imports, including 407 new product codes in the US Harmonized Tariff Schedule. Trump also stated that he intends to issue further announcements on steel tariffs, along with new levies aimed at semiconductor imports.

President Trump may urge Zelenskyy to accept a swift settlement after his Friday talks with Russian President Vladimir Putin, which focused on Moscow's demand that Ukraine surrender territories. The meeting will also feature European Commission President Ursula von der Leyen, French President Emmanuel Macron, and NATO Secretary General Mark Rutte.

The Dow surged 1.71%, the S&P 500 advanced 0.94%, and the Nasdaq Composite appreciated 0.81% last week. All three indexes reached fresh record highs as recent United States (US) economic data support the case for a Federal Reserve (Fed) rate cut in September.

Traders are awaiting Fed Chairman Jerome Powell's comments at this week's Jackson Hole meeting to gain further cues regarding the path of interest rate cuts. It is worth noting that lower borrowing costs could stimulate economic activity in the United States, the world's largest economy.

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

 : 2025.08.18

Update

Last updated

 : 2025.08.18

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