The Dow Jones Industrial Average (DJIA) is rising 0.11% today, even as shares of UnitedHealth (UNH) continue to weigh on the index. The index has been struggling recently following the assassination of UnitedHealth CEO Brian Thompson last week, with UNH stock remaining incredibly volatile.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
However, it appears the Dow Jones index is finally starting to free itself from these UNH woes. The increase today comes alongside positive movement from Apple (AAPL), Microsoft (MSFT), Salesforce (CRM), Walmart (WMT), and others.
What’s Behind the Dow Jones Index Rally?
Many stocks are on the rise Wednesday following the release of the Consumer Price Index (CPI) report for November. That saw inflation increase by 2.7% year-over-year and 0.3% from October. These match what experts were expecting for the period.
This is good news for stocks as it means an interest rate cut will likely happen this month. The Federal Reserve will meet next week, and economists are betting on a 25-point drop in interest rates during that meeting.
How to Invest in the Dow Jones Index?
Investors can’t directly invest in the Dow Jones Industrial Average as it’s an index. Even so, there are options to gain exposure to it. The easiest way to do this is by taking a stake in one of the companies included in it. The stocks pushing it higher today are solid bets for risk-averse traders. Those who don’t mind taking a chance on UNH might benefit from getting in on today’s dip. The stock’s average price target of $624.63 represents a potential 16.21% upside and it carries a Strong Buy consensus rating.
The next option is for traders to buy shares of an exchange-traded fund (ETF) that tracks the index. SPDR Dow Jones Industrial Average ETF Trust (DIA), iShares Dow Jones Industrial Average UCITS ETF (IDOWF), ProShares UltraPro Dow30 (UDOW), and ProShares Ultra Dow30 (DDM) are all options worth considering today.
