Dow Jones Slips Amid Mixed Inflation Signals and Trade Tensions

The Dow Jones Industrial Average (DJIA) edged lower on Tuesday despite encouraging producer price index (PPI) data showing cooling inflation. August's PPI fell 0.1% month-over-month, sharply below the expected 0.3% gain, while the annual figure rose just 2.6% versus forecasts of 3.3%. Core PPI, excluding food and energy, also underperformed estimates.

Former President TRUMP seized on the data, declaring "No Inflation!!!" in a Truth Social post while renewing his attacks on Federal Reserve Chair Jerome Powell. Markets widely anticipate at least a 25-basis-point rate cut at the upcoming FOMC meeting.

Trade tensions escalated as Trump pushed for aggressive tariffs, demanding the EU impose 100% duties on Chinese and Indian imports. The political uncertainty offset positive inflation trends, leaving equities in negative territory.