The Dow Jones opened Tuesday’s trading session higher as the US trade deficit continued to decline under President Trump’s policies.
In June, the overall trade deficit fell by 16% to $60.2 billion, below the consensus estimate of $61.0 billion and marking its lowest level since September 2023. The goods trade deficit also narrowed by 10.8%, reaching its lowest level in six months.
A decline in the trade deficit boosts the economy’s gross domestic product (GDP) by subtracting imports from calculations while adding exports. In June, exports fell by 0.5% and imports dropped by 3.7%. This resulted in a revised GDP growth estimate of 3.0% for the second quarter, indicating a rebound after the first quarter’s decline of 0.5%.
However, the Dow Jones still lost 0.14% despite the trade deficit decrease, suggesting that other market factors are at play.
Source: https://www.tipranks.com/news/dow-jones-slips-as-trade-deficit-slides-to-multi-year-low