Economic Pressure Could Drive Stock Market Further Down Today
Last week, the stock market ended low, and this week could be even worse if Monday’s numbers are any indication. We expect a low market performance as Tuesday’s trading begins soon.
On Monday, the Dow Jones was the only one of the three major stock indices that gained, with an increase of 0.08% there, or 33 points. The Nasdaq Composite fell by 1.21%- a loss of 237 points, and the S&P 500 dropped 0.5%, losing 30 points.
The expectation for Tuesday is that we will see a repeat of these declines, with the Dow Jones likely to join the other indices in recording glost ground. These negative predictions are based on tariff fears as the Trump administration continues to talk about new tariff options. There have also been a number of federal job cuts, which have left many investors and economists wondering how that will affect the US economy.
At the end of this week, it will be revealed to the public if tariffs imposed on Canada and Mexico will continue to be placed on pause or if they will resume. Both countries gave in to the demands of the US government concerning border security as a way to stop incoming tariffs the US was wanting to impose. There are definitely investor concerns that those tariffs will be instituted anyway by the end of the week.
What to Look for
Investors should be paying attention to the US consumer confidence report, which could shed some light on where the economy is headed and how inflation has affected the mindset of the average consumer in the United States.
Nvidia (NVDA) is likely to impact the stock market in a big way this week. The company will report its earnings, which is the first time it is doing so since Chinese company DeepSeek shook the market over its AI development models. The NVDA stock is currently down 3.09% ahead of market opening hours for Tuesday.
Further hurting the stock market and the economic outlook is Bitcoin’s fall below $90,000. This indicates a lack of confidence in the crypto coin as well as in the wider market.
Super Micro Computer Inc. (SMCI) dipped on Monday but has since recovered in premarket trading for Tuesday, climbing 4.30%. This stock has been an important indicator of where the chip niche is headed, and the company is potentially going to be bought up in parts by its competitors.
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