Dow Jones Falls 300 Points as US NFP Disappoints

The Dow Jones Industrial Average (DJIA) tumbled 300 points on Friday after the latest US Nonfarm Payrolls (NFP) report fell short of expectations, while consumer inflation fears intensified and economic sentiment deteriorated. Adding to market jitters, US President Donald Trump reintroduced tariff threats, reigniting concerns over trade policy.

US Jobs Data Misses Estimates, but December Sees Upward Revision

Preliminary NFP figures for January revealed a weaker-than-expected 143K job additions, falling short of the 170K forecast. However, December’s job numbers were significantly revised upward to 307K. Meanwhile, the US unemployment rate edged lower to 4.0% from 4.1%, offering some relief amid the weaker-than-expected payroll data.

Consumer Sentiment Drops to Seven-Month Low, Inflation Concerns Rise

The University of Michigan’s Consumer Sentiment Index plummeted to 67.8 in January, its lowest level in seven months, down from 71.1. The report also highlighted growing inflation concerns, with 12-month inflation expectations jumping to 4.3% from 3.3%. Long-term expectations rose slightly to 3.3% from 3.2%, signaling persistent inflationary pressures.

Trump Revives Tariff Threats, Markets React

President Trump reignited trade war fears by hinting at a new wave of tariffs, stating that countries imposing tariffs on US goods could face reciprocal measures. He signed an executive order to explore symbolic tariffs on China and suggested a broader package of duties could be on the horizon.

Market Sentiment Turns Bearish as Amazon Weighs on Dow

Equities swung wildly on Friday before trade war concerns sent the Dow lower. Amazon (AMZN) posted strong Q4 earnings and revenue but issued a cautious outlook for Q1, triggering a 3.5% drop in its stock to $230 per share. The sell-off contributed to broader market weakness.

Dow Jones Technical Outlook

The Dow Jones extended its decline for a second consecutive session, dropping 300 points to the 44,400 region. The 44,000 level is now back in focus as the index struggles to break past the 45,000 resistance zone. The immediate downside target is the 50-day Exponential Moving Average (EMA) near 43,730, which could serve as the next key support level