The Dow Jones (DJIA) opened Wednesday’s trading session in the green and has jumped higher following encouraging trade deal developments.
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President Trump announced that the U.S. has secured trade deals with Japan and Indonesia. Japanese imports will be subject to a 15% tariff, down from the 25% baseline rate threatened by Trump. Japanese auto imports to the U.S., which account for nearly 30% of these exports, will come down to 15% from 27.5%. Japan has also agreed to invest $550 billion into the U.S. while lowering its tariff on imported U.S. goods to 0%.
Indonesia will face a 15% tax, down from the 32% imposed by Trump on April 2. In exchange, the country will eliminate “99% of their Tariff Barriers” and impose a 0% tariff on imported U.S. goods. Indonesia has also agreed to purchase U.S. energy, agriculture, and Boeing (BA) aircraft and supply the U.S. with critical minerals.
The U.S. and the European Union are closing in on a trade deal, according to the Financial Times. The deal would impose a 15% tariff on EU goods, including automobiles, which currently face a 27.5% tax. The 27-nation bloc would be subject to a 30% tariff if the two sides are unable to ink a deal by August 1.
Finally, Trump and the White House have released their AI Action Plan. The plan seeks to increase spending for data centers, energy infrastructure, and AI training. It also encourages easing AI regulations and advancing AI hardware export policies. “Just like we won the space race, it is imperative that the United States and its allies win this race,” the plan stated.
The Dow Jones is up by 0.92% 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.
Nvidia (NVDA) is recovering well after closing Tuesday’s trading session in the green. Microsoft (MSFT) isn’t as lucky and is still under pressure following news that its SharePoint collaboration software was hacked by three groups with links to China.
Meanwhile, stocks within the industrials, healthcare, and financial sectors are charging forward. Merck (MRK) is once again in the green after it reported earnings yesterday. Caterpillar (CAT) is joining in on the fun, despite UBS (UBS) reiterating a “neutral” rating and a $357 price target on its shares. CAT stock currently trades at $426.
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 $485.60, implying upside of 8.17% from current prices. The 31 stocks in DIA carry 29 buy ratings, 2 hold ratings, and zero sell ratings.