The Dow Jones Industrial Average (DJIA) faced downward pressure on Tuesday, briefly touching a fresh multi-week low of 43,285 before recovering to the day’s opening bids near 43,500. Despite this slight rebound, investor sentiment remains fragile as concerns about a deeper-than-expected economic slowdown continue to surface.
Consumer Confidence Takes a Hit
The US Conference Board’s consumer confidence index delivered disappointing results, falling for the third consecutive month. February’s reading dropped to 98.3, well below the anticipated 102.3, marking the sharpest single-month decline since Q3 2021. While current business conditions showed modest improvement, consumer expectations for future business conditions, income potential, and employment prospects declined, signaling growing economic uncertainty.
Trade Policy Concerns Weigh on Markets
Adding to market unease, US President Donald Trump reaffirmed his commitment to implementing steep tariffs on imports from Mexico and Canada, alongside reciprocal tariffs on other trading partners. These measures, aimed at offsetting foreign VAT and digital services taxes, raise concerns about inflationary pressures on US consumers. While some investors anticipate a last-minute policy shift, the looming threat of increased import taxes is dampening overall market confidence.
Stock Market Movers: Goldman Sachs Falls, Home Depot Climbs
Despite uncertain sentiment, the Dow Jones managed to tilt slightly bullish, with more stocks in the green than in the red. However, Goldman Sachs (NYSE: GS) was the worst-performing stock of the day, sliding 2% to $613 per share. Given the Dow’s weighted structure, every $1 decline in a stock’s price contributes to a 6.15-point drop in the index.
On the upside, The Home Depot (NYSE: HD) outperformed, climbing 4% to $398 per share. This rise came despite prevailing concerns over the homebuilding sector’s outlook, signaling investor confidence in the home improvement giant’s resilience.
Dow Jones Technical Outlook: Bearish Signals Grow
The Dow Jones remains at risk of entering another congestion phase, with the index struggling below the 50-day Exponential Moving Average (EMA) at 43,908 for the third consecutive trading session. As upward momentum weakens, a potential slide toward the 200-day EMA, currently rising into the 42,000 region, is becoming increasingly likely. Without a decisive push above 45,000, technical pressures may lead to further downside movement in the coming sessions.
Stay tuned for further market developments as economic data and policy shifts continue to shape investor sentiment.
