The Dow Jones (DJIA) hovered near breakeven for most of Wednesday’s trading session but turned negative following the Fed’s interest rate decision
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Nine Federal Open Market Committee (FOMC) members voted against a rate cut while Fed Governors Michelle Bowman and Christopher Waller voted in favor. Both Bowman and Waller have previously expressed their support for cutting rates. In a press release, the Fed added that uncertainty about the economic outlook remains elevated, although the labor market continues to show signs of strength.
The Bureau of Economic Analysis (BEA) released its advance estimate of second quarter gross domestic product (GDP), showing annualized growth of 3.0% compared to the consensus estimate for 2.6%. That marks a significant improvement from the first quarter’s decline of 0.5%. Imports, which rose by 37.9% in the first quarter, dropped by 30.3% during the second quarter, boosting GDP in the process. Consumer spending increased by 1.4% compared to 0.5% during the prior quarter.
In another sign of strength, July’s private payrolls increased by 104,000 jobs, well above the estimate for 74,000 more jobs. Private payrolls fell by a revised 23,000 jobs in June.
On Wednesday, President Trump signed an executive order to impose an additional 40% tariff on Brazil. Brazilian imports to the U.S. now face a total tariff of 50%, although some items, like wood pulp, energy products, and orange juice, are exempt.
The Dow Jones is down by 0.60% 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 catching a bid after Morgan Stanley (MS) hiked its NVDA price target to $200 from $170. The investment bank expects strong demand for the company’s Blackwell chips with big customers continuing to spend top dollar.
Other tech companies within the Dow Jones aren’t as lucky, with Apple (AAPL), Amazon (AMZN), and Salesforce (CRM) all in the red.
UnitedHealth Group (UNH) is trading higher, although its shares are still down by about 6.5% during the past five trading days on disappointing earnings and a Department of Justice investigation over its Medicare billings practices.
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 $491.24, implying upside of 10.17% from current prices. The 31 stocks in DIA carry 29 buy ratings, 2 hold ratings, and zero sell ratings.