The Dow Jones Industrial Average (DJIA) index is a hot topic on Monday as news sources claim President Donald Trump is considering a pause on tariffs. According to this source, the President may pause tariffs for 90 days, likely to allow negotiations in the ongoing trade war. That’s incredibly important, as the stock market has suffered since Trump’s tariffs were announced last week.
One exception to this potential tariff pause would be China. The report claims that President Trump intends to keep the tariffs levied against China in place, even if others are paused. That’s unsurprising as China has been a key rival and target in the U.S. trade war.
The Dow Jones index is down 0.95% as of Monday morning. Investors will note that the index was down more than 2% earlier this morning. The lessening loss came after the initial reports of a possible tariff pause.
What Does This Mean for DIA Stock?
The SPDR Dow Jones Industrial Average ETF Trust (DIA) is an exchange-traded fund (ETF) that tracks the Dow Jones index. As such, it rises and falls alongside the DJIA. If there really is a tariff pause in the works, it could boost the index higher after multiple days of drops. That would be good news for investors who hold DIA stock. This could also benefit other ETFs following the index but would be bad news for those that short it.
Is DIA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the SPDR Dow Jones Industrial Average ETF Trust is a Moderate Buy based on the consensus ratings over 31 stocks held in the ETF. That includes 29 Buy and two Hold ratings over the last three months. It also comes with an average price target of $491.25, which is a potential 28.9% upside for DIA stock.
