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Monday Feb 17 2025 09:45
2 min

The Dow Jones Industrial Average has maintained its stability, with investors largely dismissing recent tariff-related news.
On Tuesday, the Dow Jones Industrial Average (DJIA) is approaching the 44,450 mark, with equity volatility easing as President Donald Trump backs away from recent trade war rhetoric, postponing his self-imposed tariffs for the third time. Tariffs on imports from Mexico and Canada have been delayed for up to 30 days, while discussions about tariffs on China remain active, and potential tariffs on European Union goods are also anticipated.
Despite the trade war posturing, Trump's repeated reversals have led investors to believe that these tariffs were never integral to the U.S. trade strategy. Instead, they appear to have been an effort to pressure major trading partners into negotiations, seeking concessions that were largely agreed upon during the previous administration. Moving forward, market participants are likely to take tariff threats less seriously, focusing instead on substantive economic issues.
The JOLTS Jobs Openings figures for December were released on Tuesday, showing a slight decline to 7.6 million from 8.09 million. However, the JOLTS survey has a low response rate of about 30%, and this figure is preliminary, subject to revisions throughout the year. Nonetheless, the trend indicates a continued decline in job openings, with the indicator hitting two-year lows.
More than two-thirds of the Dow Jones constituents are testing higher levels on Tuesday, with investor sentiment rebounding from recent overreactions to trade war developments. Merck & Co. saw a significant drop of over 10%, falling below $90 per share, despite exceeding Wall Street earnings expectations. The decline follows the company's warning about lower-than-expected vaccine demand in China, leading to a pause in further shipments to alleviate supply issues.
The Dow Jones is experiencing fluctuations within a near-term midrange, hovering around the 44,500 level. Technical support was found near the significant 44,000 price point this week, but upward momentum remains weak as investors struggle to surpass the 45,000 mark. A cooling-off period may be necessary as technical indicators show overbought conditions.
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