The Dow Jones (DJIA) is less than 1.5% from surpassing its all-time high of 45,073.63 following the release of July’s Consumer Price Index (CPI).
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CPI rose by 0.3% month-over-month and 2.7% year-over-year. Economists were expecting a monthly and yearly jump of 0.3% and 2.8%, respectively. However, core CPI, which excludes volatile food and energy prices, increased by 0.3% for the month and 3.1% annually. Economists had forecast a monthly rise of 0.3% and a yearly increase of 3.0%.
That didn’t stop the market, and the odds of a September rate cut, from getting a boost. There is now a 94.1% chance of a 25-bps rate cut next month, up from 85.9% yesterday and 92.9% a week ago, according to CME’s FedWatch tool. With inflation cooling down, the Fed has more reason to cut rates.
“Jerome ‘Too Late’ Powell must NOW lower the rate,” Trump said in a Truth Social post following the CPI data, adding “Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board.”
Trump also said that he is considering a “major lawsuit” against Powell over the Fed’s pricey renovation of its Washington, D.C. headquarters. Trump claims that the renovation cost $3 billion when it should have cost $50 million.
The Dow Jones is up by 1.02% 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.
Goldman Sachs (GS) is leading all bank stocks within the index, despite a comment from Trump that its CEO, David Solomon, “ought to just focus on being a DJ, and not bother running a major Financial Institution.” Trump called out Goldman and Solomon for their earlier comments that tariffs would have negative effects on the economy.
Meanwhile, UnitedHealth Group (UNH) is also in the green, although the embattled healthcare company still has a long road to recovery following a Department of Justice investigation and a disappointing earnings report. UNH stock is down by 48% year-to-date.
Most tech stocks are rising higher on Tuesday, with Apple (AAPL) continuing its strong run. Earlier this month, the tech giant committed to investing an additional $100 billion in the U.S. AAPL stock is up by 10% during the past month.
DIA Stock Moves Higher 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 rising 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 $499.01, implying upside of 12.28% from current prices. The 31 stocks in DIA carry 30 buy ratings, one hold rating, and zero sell ratings.