U.S stock market tumble as tariff war continue

The recent tariff threat by President Donald Trump delivers a massive sell-off in the stock market today. DJIA index tumble more than 400 points while on averages major indices drop 1-2% today. We might see recovery after current sell-off as the downward movement has pushed major indices down 10% since beginning of February. Next week, a FOMC meeting might enter the equation as inflation has moved lower. The Fed might be urged to start cutting interest-rate again this year.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has not shown any bullish reactions as it move below the daily SMA 200. It seems the market is in an extreme fear situation where a sharp bounce could happen anytime. Next week, FOMC meeting might stop / halt the current bearish movement of the index. Traders will observe the closing level of the week. If the index could recover and close near the daily SMA 200 then there is a chance of upward movement next week.

Starbucks Inc (SBUX)

SBUX share prices down from the $116.00 level and reach $96.31 today. It is not far from the daily SMA 200 at $93.14. We might see the weakness continue, but traders could expect short-term bounce reactions near the averages. When the bearish pressure receded and there is bounce reactions, traders could enter long positions.