The Dow Jones (DJIA) is trading higher on Wednesday and continues to approach its all-time high of 50,512.
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Forget margin or options. Here's how the pros trade QQQU.S. equities received a helping hand after President Trump announced a U.S.-Iran ceasefire extension without specifying the duration. He added that the U.S. will continue to blockade vessels entering and exiting Iranian ports while awaiting a war resolution proposal from the country’s “seriously fractured” government.
Sources familiar with the matter expect the extension to last between three and five days, with Trump saying the next round of talks could come as soon as Friday. Iran hasn’t indicated whether it is open to participating in negotiations, with Iranian official Mahdi Mohammadi describing the extension as a “ploy to buy time for a surprise strike.”
Earlier this week, Iran demanded that the U.S. lift its naval blockade as a prerequisite to engaging in negotiations. However, the U.S. has remained adamant that the blockade will stand, with Senator Lindsey Graham saying that it could expand and “become global soon” following a call with Trump and Secretary of War Peter Hegseth. Trump previously claimed that the blockade results in Iran losing $500 million per day.
Meanwhile, Brent crude oil futures (BZ) continue to rise and are up by 30% since the start of the war on February 28. This morning, Iran attacked and seized two commercial ships attempting to cross through the Strait of Hormuz. It also moved two supertankers into the Arabian Sea in what appears to be a test of the U.S. blockade’s effectiveness.
The Dow Jones is up by 0.61% 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.
Apple (AAPL) is leading the tech sector higher and has recovered all of its losses since the company announced that long-time CEO Tim Cook would step down on September 1. Microsoft (MSFT) is also trading higher and has returned 12% over the past month.
Elsewhere, Boeing (BA) is up by nearly 5% after the aerospace company delivered a double beat on its first-quarter revenue and adjusted EPS. Boeing also expects to ramp up production of its 737 Max aircraft to 47 per month. UnitedHealth Group (UNH) is the top-performing healthcare stock following an earnings beat earlier this week.
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 $551.09, implying upside of 11.57% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.