Dow Futures drifted lower on Thursday as Donald Trump’s tariff letters continued to dominate the narrative on Wall Street.
Dow Jones futures traded 100 points lower at press time, while S&P and Nasdaq 100 futures also traded in red. It must be noted that the investors have shrugged off the larger uncertainty around the trade war, but volatility is still in the room.
On Wednesday, Wall Street bounced back with the S&P 500 and Dow snapping a three-day losing streak, rising 0.6% and 0.5% respectively. The Nasdaq led the charge, jumping 0.9% to close at a new record high.
The rally was fueled by fresh excitement around AI stocks with Nvidia gaining nearly 2% after briefly becoming the first publicly traded company to hit a $4 trillion valuation.
The surge came despite President Donald Trump delivering letters declaring higher tariffs on seven more nations on Wednesday.
Moreover, in a rather dramatic post on Truth Social, Donald Trump also threatened Brazil with 50% tariffs for conducting a “witch hunt” trial against former President Jair Bolsonaro and unfairly targeting US tech companies.
5 things you should know before Wall Street opens
1. The tech momentum continues to shine as the Nasdaq climbed to a record high, driven by a strong rally in tech stocks led by Nvidia, which briefly touched a $4 trillion market cap.
The tech momentum gave Wall Street a boost, helping the S&P 500 and Dow Jones rebound and claw back most of their earlier losses from the week.
2. Some chart signals are flashing caution for the Dow, with a bearish divergence showing up in the hourly RSI. If resistance levels continue to hold, we could see a short-term pullback.
A drop below 44,170 might open the door for further downside, possibly heading toward the 43,800–43,600 zone, which lines up with the 20-day moving average.
3. The latest Fed minutes show growing disagreement among policymakers over when and how much to cut interest rates.
While most Fed officials agree that some rate cuts this year are likely appropriate, the details reveal a clear split.
A few members are open to lowering rates as early as the July meeting, but others remain cautious, pointing to stubbornly high inflation and arguing that no cuts may be needed at all in 2025.
4. The US Treasury’s $39 billion auction of 10-year notes went smoothly, with yields landing in the 4.39% to 4.41% range, an encouraging sign that demand for government debt remains solid, even as federal borrowing needs grow.
The lower yields helped fuel a rally in tech stocks and gave a boost to overall market sentiment.
5. The US Dollar Index slipped for a second straight session, unable to push past its 20-day moving average at 97.70.
Meanwhile, the Australian dollar edged up 0.24%, and gold bounced back 0.3% intraday to $3,325 after an earlier dip.
These market moves reflect changing risk appetite and growing expectations that the Fed may ease rates later this year.
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