The Dow Jones (DJIA) is trading higher on Wednesday after the U.S. and Iran put forward proposals to end the war.
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Forget margin or options. Here's how the pros trade QQQWith Pakistan acting as an intermediary, the U.S. sent Iran a 15‑point plan to end the war, including ending uranium enrichment, pledging to never pursue nuclear weapons, and reopening the Strait of Hormuz as a free maritime corridor. Iran rejected the proposal and outlined its own list of conditions, such as war reparations, recognition of its sovereignty over the Strait of Hormuz, and a binding guarantee that the U.S. and Israel won’t declare war on it again.
“Someone like us will never get along with someone like you,” said IRGC spokesperson Ebrahim Zolfaghari. “Not now, not ever.” Meanwhile, a top U.S. official labeled Iran’s demands as “ridiculous and unrealistic.” Still, investors viewed the exchange of terms as a first step toward a potential ceasefire.
Elsewhere, BlackRock (BLK) CEO Larry Fink cautioned that oil rising to $150 could trigger a “stark and steep recession.” Brent crude futures (BZ), the international benchmark for oil, have climbed 26% to $97 since the U.S. and Israel first attacked Iran on February 28.
Fink said it’s too early to predict the outcome of the war, though he anticipates one of two scenarios. In the first, Iran would be accepted back into the international community after the conflict, sending oil prices below their pre‑war levels. If the first scenario fails, the second is far less optimistic, with Fink warning of a recession and “fyears of above $100, closer to $150 oil, which has profound implications in the economy.”
Finally, President Trump has commissioned the creation of the President’s Council of Advisors on Science and Technology (PCAST), which will advise the administration on advances in AI, quantum computing, biotechnology, and other emerging technologies. The council will have 24 members including the CEOs of Nvidia (NVDA), Meta Platforms (META), Google (GOOGL), and Dell (DELL), according to the Wall Street Journal.
The Dow Jones is up by 0.84% 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.
Most sectors are in the green on Wednesday, highlighted by strong performances from healthcare, industrials, and consumer cyclical stocks. Falling oil prices and inflation expectations are giving a helping hand to these sectors.
Most tech stocks are also rising, led by Nvidia (NVDA). That comes despite Director Mark Stevens disclosing a $38.5 million insider sale. Meanwhile, Magnificent 7 peer Amazon (AMZN) is climbing after announcing that it would acquire “approachable” robot maker Fauna Robotics.
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 $563.94, implying upside of 21.31% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.