Dow Jones Slips Amid Trade Deals and Rate Cut Uncertainty
The Dow Jones Industrial Average (DJIA) edged lower on Friday as investors weighed new trade agreements against fading expectations for a December rate cut. The market's muted response underscores deepening uncertainty about monetary policy direction.
The U.S. secured a framework trade deal with Switzerland and Liechtenstein that slashes import tariffs to 15% from 39%, while securing $200 billion and $300 million in respective investment commitments. Separate agreements with four Latin American nations will ease agricultural and medical exports.
These developments failed to offset growing skepticism about near-term Fed easing. The tariff reductions—particularly Switzerland's reversal from August's 39% rate—signal trade policy normalization, but markets remain fixated on interest rate trajectories.
