The Dow Jones (DJIA) is trading higher on Wednesday ahead of a closely watched earnings report from semiconductor powerhouse Nvidia (NVDA). Analysts expect the company to report revenue of $66.23 billion and an adjusted EPS of $1.54.
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This morning, U.S. Trade Representative Jamieson Greer said that the U.S. import tariff rate on China will likely remain between 35% and 50%. “We don’t intend to escalate beyond that,” he told Fox News. “We intend to really stick to the deal that we had before.”
Greer added that the White House is preparing an order to raise the global tariff rate to 15% from 10% under Section 122 of the Trade Act of 1974. Section 122 allows the president to enforce tariffs of up to 15% for a maximum of 150 days in response to a significant balance-of-payments deficit. The tariffs can only be extended with congressional approval.
Greer also said that the U.S. would “accommodate” countries who have already signed trade deals, while other countries could face tariffs higher than 15% down the road.
During President Trump’s State of the Union address on Tuesday evening, he ordered Big Tech to handle their energy usage amid widespread concerns of rising electricity prices across the country. Under a new “ratepayer protection pledge,” he said that companies running energy-intensive AI data centers will be required to fund their own electricity usage. “So I’m telling [companies] they can build their own plant; they’re going to produce their own electricity,” Trump said.
The Dow Jones is up by 0.63% 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.
Tech is continuing to rally following a sharp selloff on Monday, with all six companies trading in the green. Nvidia’s earnings later today will likely shake up the entire market, with options pricing suggesting that NVDA will move by 6% in either direction by the end of the week.
Elsewhere, all three consumer defensive stocks are slightly in the red, while four of the five financial stocks are up by at least 1%. Within consumer cyclicals, Home Depot (HD) is down by over 3%, despite reporting a double beat on both revenue and adjusted EPS on Tuesday morning.
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 $565.07, implying upside of 14.33% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.