U.S. Index futures took a sharp turn to the downside on Friday as the potential for a trade war sent jitters throughout Wall Street.
Yesterday, U.S. President Donald Trump announced new tariffs on imported steel and aluminum of 10% and 25%, respectively. Many economists feel that the move puts an enormous amount of pressure on both foreign and domestic mills & endangers thousands of international jobs.
As threats of retaliation from importers trickled in, fears among investors followed suit pushing the major indices lower. It’s widely believed that nationalistic approaches to trade ultimately lead to higher costs domestically which could put a damper on inflation and lead to an overall slowdown in the market.
While the immediate kneejerk reaction from Wall St. sent the markets tumbling, the imposed tariffs will have little impact in the near term due to previous contractual obligations. However, President Trump sticking to his campaign promise to the steel industry will be another test in an already fragile and volatile market.
The above chart features the E-mini Dow, E-mini NASDAQ & E-mini S&P 500 futures contracts. Utilizing NinjaTrader’s multi series charting capabilities makes it easy to compare the price action of multiple instruments on one chart. Get started with NinjaTrader for FREE today!