Dow Jones Suffers Worst Monthly Performance Since 1932 Amid Mounting Market Pressures

Source: www.tradingview.com

The Dow Jones Industrial Average ($DJI) plunged nearly 1,000 points yesterday, closing the session down 2.48%. For the month so far, the index has shed 9.12% — marking its steepest monthly decline since 1932.

From a technical standpoint, the outlook has grown increasingly concerning. On the long-term monthly chart, the Relative Strength Index (RSI) has now dropped below 50, slipping into bearish territory. This threshold is often seen as a key momentum indicator; prolonged weakness below it may point to further downside pressure in the weeks ahead.

With just over a week remaining in the month, investors are watching closely to see whether the index can find a support level to stabilise the current sell-off.

Beyond technical signals, broader concerns are weighing on sentiment. Market anxiety has intensified following renewed political attacks on Federal Reserve Chair Jerome Powell. President Trump’s latest remarks on Truth Social have reignited debate around the independence of the U.S. central bank, raising fears of political interference in monetary policy.

Compounding the uncertainty are stalled trade discussions. Hopes for swift progress in negotiations with major trading partners have dimmed, contributing to a more fragile market mood.

Investor confidence is quickly eroding, with U.S. exceptionalism coming under increasing scrutiny. The so-called "sell America" trade has gained traction, putting further pressure on risk assets as markets navigate a politically and economically uncertain landscape.