The Dow Jones (DJIA) opened Tuesday’s trading session in the green but has turned negative following an update on inflation.
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June’s Consumer Price Index (CPI) inflation rose by 0.3% month-over-month and 2.7% year-over-year. While both figures were in line with the consensus estimate, inflation has accelerated as the effects of President Trump’s tariffs begin to materialize. Year-over-year inflation rose by 2.4% in May and 2.3% in April.
“Fed should cut Rates by 3 Points. Very Low Inflation. One Trillion Dollars a year would be saved!!!” said Trump in a Truth Social post. Unfortunately, Trump will likely have to wait a bit longer for rate cuts. The odds of a 25-bps rate cut during the July 29-30 Federal Open Market Committee (FOMC) meeting dropped to just 2.6% from 6.2% yesterday following the release of June’s inflation data. There is a 52.3% chance of a 25-bps cut during the next meeting in September.
Trump also announced that the U.S. has reached a trade agreement with Indonesia. He had previously imposed a 32% tariff on the country, effective August 1. The details of the deal have not yet been reported.
The Dow Jones is down by 0.64% 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) secured a new all-time high and is lifting the index after the semiconductor company said that it would receive U.S. government clearance to resume H20 GPU sales to China. The announcement follows a meeting between CEO Jensen Huang and Trump at the White House.
Meanwhile, the healthcare sector is under pressure with all four stocks in negative territory. The losses are led by UnitedHealth Group (UNH). This morning, Wolfe Research lowered its UNH price target to $330 from $363 while maintaining its “outperform” rating.
Financial stocks are also contributing to the downside with all five constituents in the red.
DIA Stock Falls 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 $477.34, implying upside of 7.97% from current prices. The 31 stocks in DIA carry 30 buy ratings, 1 hold rating, and zero sell ratings.