The Dow Jones (DJIA) is trading higher on Monday after President Trump called off strikes on Iranian energy infrastructure locations and ahead of potential peace talks between the two nations later this week.
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Trade QQQ with leverageOver the weekend, Trump threatened to strike Iran’s power plants unless the country agreed to reopen the Strait of Hormuz. However, he called off the plan this morning following “very good and productive conversations” and said that a peace deal could come within “five days or sooner.” Brent crude futures (BZ), the international benchmark for oil, traded lower on the news and are down by 8% today.
Iran’s Foreign Ministry denied holding direct negotiations with Trump, although an Israeli official told Axios that Speaker of the Iranian parliament Mohammad Bagher Ghalibaf could meet with U.S. Special Envoys Steve Witkoff and Jared Kushner and possibly Vice President J.D. Vance in Islamabad, Pakistan as soon as this week. The official added that Israel was aware of indirect U.S.-Iran communications but was caught off guard by Trump’s remarks. “We did not know things were moving that fast,” he said.
Elsewhere, Chicago Federal Reserve President Austan Goolsbee said that the central bank could still cut rates later this year, although the decision will hinge on the duration of the U.S.-Iran war and if inflation cools down to the 2% level. “I remain fairly optimistic that by the end of ’26 rates could go down, but I wanted to see proof that we’re back on an inflation headed to 2%,” Goolsbee told CNBC in an interview. “This [war] definitely throws a wrench into the plans.”
The most likely outcome at 67.7% is for the Fed to maintain rates by year-end. The odds of one rate cut are at 9.2%, down from 19.1% a month ago, while the odds of two cuts are at 0.2%, down from 32.2%.
The Dow Jones is up by 1.39% 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.
The consumer cyclical, financial, and tech sectors are leading the index higher as investors embraced a risk-on approach following Trump’s peace deal comments. Amazon (AMZN) is up by nearly 3% after Barclays reiterated its price target of $300, citing the company’s recent multibillion-dollar agreement with OpenAI and partnership with Anthropic.
Elsewhere, industrial stocks are also catching a bid on falling oil prices, highlighted by a 3% jump in 3M (MMM). Lower oil prices can reduce fuel, transportation, and production costs for companies in the sector.
Is the Dow Jones a Good Long-Term Investment?
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 $562.57, implying upside of 21.73% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.