The Dow Jones Industrial Average (DJIA) swung wildly during overnight trading and into Thursday’s session, as investors eagerly jumped back into the tech sector. In a further hurdle for the Trump administration, the US Federal Courts have deemed the President’s tariff policies unlawful. Attempting to use the IEEPA, President Trump has faced repeated setbacks in his efforts to impose broad import taxes. These tariffs have become a political tool, aimed at both generating government revenue and leveraging improved trade deals. However, the US Court of International Trade ruled against Trump’s “Worldwide Retaliatory Tariff Orders,” stating that they exceed the jurisdiction of the IEEPA. The Trump administration is expected to fast-track the appeals process to appeal the decision to the Supreme Court.
The latest data from the US did little to alleviate market concerns, with mixed results across the board. Pending Home Sales hit a one-year low, Initial Jobless Claims rose more than expected, and GDP for the first quarter saw a slight contraction. Looking ahead, investors will closely watch April’s Personal Consumption Expenditure Price Index (PCE) for signs of inflation, as it is a key factor in the Federal Reserve’s rate decisions.
The Dow Jones Industrial Average fell sharply from its weekly highs during overnight trading, settling around the 42,000 mark. This follows a period of consolidation, with the index struggling to break through its 200-day Exponential Moving Average (EMA) near 41,685. The future of the stock market now hinges on Friday’s PCE inflation data, as it will affect the Fed’s next steps in terms of interest rates.