Dow Jones falls as futures falter on cooling GDP and hotter PCE

Dow Jones futures and other major indexes faltered after US GDP cooled and Fed-favored PCE inflation heated up, while private credit worries and the prospect of a possible U. S. strike in Iran pushed the Dow Industrials lower.

Dow Jones and futures slide as GDP cools and PCE heats up

Futures for the Dow, S&P 500 and Nasdaq moved lower in response to a mix of macroeconomic signals: US GDP cooled, removing some growth momentum, even as the Fed-favored PCE measure of inflation heated up. The juxtaposition of softer GDP and hotter PCE tightened focus on the economic data that influence policy decisions and market positioning.

Private credit worries and potential strike on Iran rattle markets

Markets were further unsettled by private credit worries and by growing anxiety over a possible U. S. strike in Iran. Those concerns compounded the sell-off forces, with reports that investors were bracing for geopolitical action contributing to the Dow Industrials falling in the session.

What traders are watching next

Traders are tracking the same set of forces driving the move: the cooled US GDP reading, the hotter Fed-favored PCE inflation metric, private credit stress and the potential for military action involving Iran. Each of those elements is already affecting risk appetite and positioning in equity futures and the Dow Industrials.

Markets will remain sensitive to new developments on those fronts and to any further economic readings tied to GDP or PCE that emerge in the near term.