- Dow Jones rolled nearly 42,000 when they cut actions on Friday.
- Despite the lack of noteworthy data, the actions are shaking under the pressure of expiry.
- President Trump suggested “flexibility” in the upcoming tariffs when the rotation begins again.
The industrial average Dow Jones (DJIA) recorded an augment in volatility on Friday, but settled near the place where nearly 42,000 began, when investors struggle with deciding where to go further. Despite the relatively gaunt show in the economic document, market moods remain strictly drawn when traders are struggling with the fresh inconsistency of US President Donald Trump.
Adding further pressure on actions, Friday was “four times witches of the witches” for markets, with the proportion of Jumbo options planned for expiry. According to Goldman Sachs (CS) estimates and reported by CNBC Sean Conlon, on Friday the options of action, index and term contracts worth over USD 4.7 trillion will expire.
After weeks of switching in the last tariff packages, but still swearing the “mutual” tariffs on April 2, US President Donald Trump again opened the door to the “flexibility” of his previously declared tariff package in stone tariffs at the beginning of April. In a post on social media, on Friday morning, President Trump repeated that the US would impose mutual tariffs on any country that has export tariffs in the US, but it was expected that there may be a certain “flexibility” in tariffs, opening the door to countries that can negotiate or leave us import taxes. This is the sixth time in a row in less than ten weeks, in which Donald Trump himself changed his own tariff proposals of Donald Trump, and investors tired under the burden of Trump’s trade war at the same time.
The Federal Reserve (FED) towed the line this week, rejecting the last jumps in inflation indicators and generally waving warning signs that began to appear in economic data. Chairman of the Fed Jerome Powell and the Federal Committee of the Open Market (FOMC) still see that US interest rates are falling by another 50 BPS to the remaining 2025. According to the CME Fedwatch tool, the rate traders value almost 80% chances that the next amount of the Fed quarter will come to convening the rate of the American central bank.
Messages
Despite the charged Friday, the US capital indexes remain close to the opening offers of the day. Most of the American spare sectors are slightly red, compensating for profits in key names, such as Boeing (BA), which extends recent recovery and climbs by over 4%to recover USD 180 per share.
Dow Jones price forecast
Dow Jones is still applying south of key price levels, which means that in several unsuccessful attempts to return through a 200-day interpretation average (EMA) near 42,000 main price handles. The price action is still tilted in favor of buyers, but the lack of momentum at the highest level maintains offers covered by a up-to-date technical ceiling.
