The Dow Jones (DJIA) surpassed 50,000 on Thursday after President Trump and Chinese President Xi Jinping vowed to strengthen the U.S.-China relationship on the first day of their summit.
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During the two-hour-and-15-minute meeting, the two leaders discussed trade ties, expanding access for U.S. businesses in China, and the conflict in Iran. Both sides agreed the Strait of Hormuz should reopen, with Xi opposing its militarization and any access tolls. In addition, Xi expressed interest in increasing purchases of U.S. oil to reduce China’s reliance on Hormuz. Both Trump and Xi also said Iran must never be allowed to obtain a nuclear weapon.
“It’s a very special relationship, and I want to thank you again,” Trump told Xi. “This has been an amazing period of time.” Furthermore, Trump invited Xi and his wife, Peng Liyuan, to the White House on September 24.
However, Taiwan remains a key point of tension between the two countries. Xi warned that any disagreement could result in “clashes and even conflicts.” China claims Taiwan as part of its territory, while the U.S. backs its self-governance. The issue carries greater weight today because Taiwan Semiconductor (TSM) produces the majority of advanced chips that power AI.
Elsewhere, U.S. retail sales accelerated for a third consecutive month, climbing 0.5% in April, in line with expectations. Core retail sales, which exclude volatile categories like autos and gas, climbed 0.7%. However, the data isn’t adjusted for inflation, meaning the growth could reflect higher prices. That view is supported by the Consumer Price Index (CPI), which rose 3.8% in April to a three-year high.
The Dow Jones is up by 0.75% 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.
Nvidia (NVDA) is pulling the tech sector higher after the U.S. announced that it had approved the shipment of its H200 chips to several Chinese companies, including Alibaba (BABA) and JD (JD). However, Cisco (CSCO) is the top performer within the index after the company reported better-than-expected revenue and EPS, powered by strong demand for AI infrastructure.
The financial and consumer defensive sectors are also showing strong performance, with all stocks in the green, led by Goldman Sachs (GS). Meanwhile, Apple (AAPL) is flat on the day, despite receiving a price target boost to $500 from $365 from Evercore ISI.
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 $575.69, implying upside of 14.72% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.