The Dow Jones (DJIA) is trading higher on Wednesday as investors digest the latest updates in the U.S.-Iran war.
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New trading tool for QQQ bullsBefore the market open, President Trump said in a Truth Social post that Iranian President Masoud Pezeshkian had requested a ceasefire, adding that the U.S. would only engage in discussions if the Strait of Hormuz reopens. “Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!” he said. However, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei labeled Trump’s claim as “false and baseless” in a statement to Al Jazeera.
Trump also said the U.S. will pull out of Iran “pretty quickly” while leaving the option of returning for “spot hits” in a phone interview with Reuters. He didn’t provide a timeline for the plan.
Trump is set to deliver a speech at 9 p.m. Eastern Time today to provide an update on the war. He stated he would address his ire with NATO and that he is “absolutely” considering pulling out of the global alliance. “They haven’t been friends when we needed them,” he said. “We’ve never asked them for much … it’s a one-way street.” Trump has criticized NATO in recent weeks for its lack of involvement in the war and for not helping reopen the strait, which handles around 20% of global oil flows.
Elsewhere, U.S. retail sales climbed 0.6% in February, topping the estimate of 0.5% and improving from a drop of 0.2% in January. Core retail sales, which exclude volatile categories like autos and gas, increased 0.5%, above the estimate of 0.3% and rising from 0% in the prior month. The data signals strong consumer spending before the start of the war, which began on February 28. Since then, gas prices have surged 36% to $4.06 a gallon, while Brent crude oil futures (BZ) have risen by 34%.
“While household consumption remains the primary driver of US economic growth, the ongoing Middle East conflict and resulting surge in oil prices are testing its resilience,” wrote Moody’s analysts in a note.
The Dow Jones is up by 0.89% 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 stocks in the index are trading higher, although Nike (NKE) plummeted to a 14-year low after providing disappointing guidance. The company expects its fiscal fourth quarter revenue to fall by between 2% and 4%, missing the consensus analyst estimate for a 1.9% rise. Chevron (CVX), the lone energy stock in the Dow Jones, is also trading lower alongside falling Brent crude oil futures (BZ).
Elsewhere, all six tech stocks are in the green, led to the upside by Cisco (CSCO). Microsoft (MSFT) is getting a boost after announcing that it would invest $5.5 billion into Singapore’s cloud and AI infrastructure.
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 $547.38, implying upside of 17.12% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.