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    Dow Jones futures decline 0.30% to below 46,550 amid risk aversion and Fed expectations

    by VT Markets
    /
    Nov 18, 2025
    **Risk of US Federal Reserve Rate Cut Declines** The Dow Jones dropped by 1.18%, the S&P 500 by 0.92%, and the Nasdaq 100 by 0.83%. US stocks struggled as enthusiasm for the AI sector faded ahead of Nvidia’s earnings report. Investors are also waiting for earnings results from Target and Walmart. The Dow Jones Industrial Average includes the 30 most actively traded US stocks. It is a price-weighted index, calculated by dividing the total price by 0.152, which has led to criticism for its limited coverage compared to broader indices like the S&P 500. Several factors influence the DJIA, including quarterly earnings, macroeconomic data, Federal Reserve interest rates, and inflation. Dow Theory, created by Charles Dow, analyzes market trends and volume through phases like accumulation, public participation, and distribution. ### Methods of Trading the DJIA You can trade the DJIA through various options such as ETFs, futures contracts, options, and mutual funds, each providing unique ways to engage with the index. With US index futures suggesting a lower open, caution is visible in the market. This follows yesterday’s decline and reflects growing uncertainty ahead of important economic data this week. The CBOE Volatility Index (VIX), often called the market’s fear gauge, rose above 18, a significant increase from the calmer times we observed in October 2025. The main cause of this caution is the quickly changing expectations around interest rates. Just a week ago, there was a 67% chance of a December rate cut from the Federal Reserve. But now, that likelihood has dropped below 50%. This shift happened after the latest CPI report for October 2025 showed core inflation stuck at 3.6%, leaving the Fed with less flexibility to ease policies. Create your live VT Markets account and start trading now.

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