Dow Jones Industrial Average trims early losses on less-than-feared Durable Goods Orders plummet

The Dow Jones is clawing back recent losses as investor sentiment continues to climb.
Traders continue to bank on an eventual walk back of the Trump team’s sky-high tariff threats.
Trade deals remain limited, and the August 1 deadline is approaching fast.

Joshua Gibson FXStreet

The Dow Jones Industrial Average (DJIA) rebounded on Friday, recovering its footing after a mild downturn during the previous session. Q2 earnings broadly beat the street this week, sending most major indexes into record highs, but the Dow Jones grappled with some downside in key overweight stocks, crimping the blue-chip average’s top line.

Markets rise on milder-than-expected durables decline

Headline Durable Goods Orders contracted sharply in June, contracting by 9.3% and marking in the worst two-month change since the covid pandemic. However, the top-line figure still beat median forecasts of a 10.8% contraction, bolstering immediate market reactions.

Durable Goods Orders excluding vehicles rose 0.2% MoM versus the expected 0.1%, highlighting how much of the headline decline was a result of a hard wobble in the US’s automotive sector as global-facing tariffs and steep steel and aluminum import taxes are beginning to hit US consumers and businesses alike.

US-EU trade deal: The eternal 'maybe'

Rumors continue to swirl around the tank about a possible trade deal between the US and the European Union (EU), but a continuous cycle of teases and hints from staffers under US President Donald Trump has become rote for investors awaiting firm details. The Trump administration has scrambled to secure trade deals ahead of its own self-imposed deadline of August 1. Despite multiple announcements of agreements between the US and several other countries, including the United Kingdom (UK) and Japan, very little actual paperwork has been created, leaving most market participants in the dark about what the US’s physical trade environment will look like in the near future.

Dow Jones price forecast

The Dow Jones’ recovery on Friday has pushed the index back into the bullish side of recent congestion, and the DJIA is holding steady near all-time highs as bullish price action battles for a foothold near 45,000. Despite a firm upswing this week, the Dow is struggling to reclaim record high territory as its major index peers outperform the comparatively tech-light Dow Jones.

Dow Jones 15-minute chart

Dow Jones daily chart

Economic Indicator

Durable Goods Orders

The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP extends recovery as on-chain activity grows

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.