The Dow Jones (DJIA) is trading lower on Tuesday as investors digest a disappointing consumer confidence update and President Trump’s higher tariffs on South Korea.
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The Consumer Confidence Index (CCI) fell to an 11-year low of 84.5 in January as respondents expressed concern about the labor market and business conditions, citing inflation, tariffs, and geopolitical tensions. A reading above 100 signals optimism, while a reading below 100 points to pessimism. In addition, consumers are becoming more pessimistic about higher income expectations, with 15.7% expecting their income to rise, down from 18.8% in the prior month.
“All five components of the Index deteriorated, driving the overall Index to its lowest level since May 2014 (82.2)—surpassing its COVID-19 pandemic depths,” said TCB Chief Economist Dana M. Peterson.
Trump’s tariff strategy is back in full force after he announced that South Korea’s tariff rate would rise from 15% to 25%. He attributed the hike to South Korea failing to honor a trade deal reached between the two sides last July. “Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%,” Trump said in a Truth Social post.
As part of the trade deal, South Korea agreed to invest $350 billion in the U.S. However, the country has been slow to implement the investment. Five bills linked to the investment have been submitted to the National Assembly and are under review, according to Kim Hyun-jung, a spokesperson for the governing Democratic Party. Furthermore, Kim Jung-Kwan, South Korea’s Industry Minister, is set to travel to the U.S. to meet with Secretary of Commerce Howard Lutnick.
The Dow Jones is down by 0.87% 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.
UnitedHealth Group (UNH) is plunging lower after a disappointing earnings report and guidance. The company posted fourth-quarter revenue of $113.2 billion, below the consensus estimate of $113.82 billion. It guided 2026 revenue to exceed $439 billion, also below the estimate of $454.6 billion.
Financial stocks are also contributing to the downside in the index, with all five companies trading lower. On the other hand, most technology stocks are trading higher, led by Apple (AAPL) and Microsoft (MSFT). Amazon (AMZN) is also in the green after Bank of America (BAC) highlighted the growth potential of Amazon Web Services (AWS) in 2026.
Is DIA Stock 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 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 $551.02, implying upside of 12.62% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.