The Dow Jones is down by over 1% following a disappointing nonfarm payrolls report and continued weakness in consumer sentiment.
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July’s nonfarm payrolls increased by 73,000, well below the consensus estimate for 104,000. The pressure intensified after the Bureau of Labor Statistics slashed June’s job gain to 14,000, down by 133,000, and cut May’s figure by 125,000 to 19,000.
The University of Michigan’s Consumer Sentiment Index rose for a second consecutive month to 61.7 in July. At the same time, the figure fell short of the estimate for 62.0.
“Although recent trends show sentiment moving in a favorable direction, sentiment remains broadly negative,” said Surveys of Consumers Director Joanne Hsu. On the bright side, year-ahead inflation expectations declined for a second straight month to 4.5% compared to 5.0% in June. Long-term inflation expectations fell to 3.4% in July from 4.0% in June.
The market is also reeling from new tariff rates. On Thursday, Trump signed an executive order imposing tariffs ranging between 10% and 41% on dozens of countries. Switzerland was among the worst hit with a rate of 39%, while Japan and India received rates of 15% and 25%, respectively.
The Dow Jones is down by 1.44% 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.
Every single tech stock in the Dow Jones is trading lower as the sector takes a breather from several strong weeks of performance. Furthermore, Amazon is deep in the red despite the e-commerce leader reporting a double beat on earnings and adjusted EPS. It appears that investors were underwhelmed with the company’s cloud growth and profit guidance.
Elsewhere, all four industrials stocks are trading lower, while UnitedHealth Group (UNH) is continuing to fall in the wake of the embattled healthcare company announcing a new CFO.
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 $490.77, implying upside of 12.72% from current prices. The 31 stocks in DIA carry 29 buy ratings, 2 hold ratings, and zero sell ratings.