The Dow Jones (DJIA) made a new intraday low after President Trump announced a 25% tariff rate on Japan and South Korea, effective as of August 1. At the same time, Trump is offering the two countries, as well as other countries, more time to secure a deal. His previous deadline for the reciprocal tariff pause was on July 9.
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The two countries could escape tariffs if they “decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely – In other words, in a matter of weeks.” In addition, the tariff rates could be increased or decreased, depending on each country’s relationship with the U.S.
Trump also warned of an additional 10% tariff on countries that support the “Anti-American” policies of BRICS. The emerging economy group, composed of China, Russia, India, and several other countries, had previously released a joint statement condemning tariffs.
The Dow Jones is down by 1.16% at the time of writing.
Which Stocks are Moving the Dow Jones?
Let’s pivot to TipRanks’ Dow Jones Heatmap, which illustrates the stocks that have contributed to the index’s price action.
Tech stocks, the largest sector in the index, are all in the red except for IBM (IBM). The financial sector is taking a hit as well with all five stocks trading lower.
Walmart (WMT) is a rare green name in the Dow Jones. While the retailer hasn’t announced any news, WMT stock is now up by about 10% year-to-date. Competitor Amazon (AMZN) is slightly in the red ahead of its Prime Day event, which begins tomorrow and ends on July 11.
The lone energy company in the index, Chevron (CVX), is trading lower as it looks to close its acquisition of Hess (HES).
DIA Stock Moves Lower with the Dow Jones
The SPDR Dow Jones Industrial Average ETF (DIA) is an exchange-traded fund designed to track the movement of the Dow Jones. As a result, DIA is falling alongside the Dow Jones today.
Wall Street believes that DIA stock has room to rise. During the past three months, analysts have issued an average DIA price target of $470.42 for the stocks within the index, implying upside of 6.12% from current prices. The 31 stocks in DIA carry 30 buy ratings, 1 hold rating, and zero sell ratings.