Dow Jones index while arrows bleed from high inflation, wound customs tariffs

summary:
• Busty traders had known the tariffs of car by Donald Trump when the expected PCE numbers appeared, with a mutual tariff in the pipeline.

Dow Jones (indexdjx: .dji) fell sharply on Friday as a mixture of tariff warfare and soft economic stocks. The index decreased by 1.77 %, after losing 750 points to read 41,555 points at the time of writing this report. Traders adopted very risky positions as the automatic definitions of cars of 25 % of US President Donald were 25 % with the highest inflation rate than expected.

The Basic Personal Consumption Expenditure Index (PCE) (except for food and energy prices) increased to 0.4 % in February, where the average expectations of analysts of 0.3 % exceeded. The annual number was 2.8 % of 2.7 % in January, which was the same rate by analysts.

PCE numbers emphasized the opinion that inflation is on its way up and is likely to escalate significantly as the momentum trade definitions collect. This also means that the Federal Reserve will tend to maintain high interest rates, adding pressure to the struggling economy.

A car tariff will raise the average price of imported vehicles in the United States at an amount ranging between 4000 and 12,000 dollars. Although the car manufacturers are not at the Dow Jones, the impact of definitions and counter -tariffs will eventually feel the wider economy. In addition, mutual definitions against countries with a trade surplus on the United States will enter into force next week, adding pressure on economic expectations.

Download Jones Index Prepultion

The momentum indicates the Dow Jones index to a possible continuation of the negative aspect if the resistance continues at the 41,823 points sign. This trend is likely to witness the creation of the first support at 41,355, but the strongest momentum will lead to a decrease in this sign to reduce the procedure to test 40,883.

On the other hand, the transition above 41,823 points will turn the momentum into the upper direction. With bulls control, the index is likely to face initial resistance at 42224, however, a stronger momentum will show this barrier and can push it to counter the second resistance at 42740.