The Dow Jones (DJIA) opened Friday’s trading session in the green but has since fallen into negative territory as the tech rout continues with Nvidia (NVDA), Microsoft (MSFT), and Amazon (AMZN) all trading lower.
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However, consumer stocks have continued to hold their ground. Stocks like McDonald’s (MCD), Walmart (WMT), and Procter & Gamble (PG) are all trading higher.
Earlier this week, the Fed voted to cut interest rates by 25 bps, although three officials dissented, registering the largest number of dissents since 2019. While Fed Governor Stephen Miran advocated for a 50 bps reduction, Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid dissented in favor of holding rates steady.
Both Goolsbee and Schmid are concerned that inflation is still too high. “Inflation remains too high, the economy shows continued momentum, and the labor market—though cooling—remains largely in balance,” wrote Schmid in a statement, adding that rates should be modestly restrictive in order to prevent the economy from overheating. Goolsbee noted that he is “pretty optimistic” that rates will be lower next year, although he remains uncomfortable with “front-loading” rate cuts while the risk of inflation still remains.
Elsewhere, President Trump said in a Truth Social post that Thailand and Cambodia “have agreed to CEASE all shooting effective this evening” after he called Thai Prime Minister Anutin Charnvirakul and Cambodian Prime Minister Hun Manet. “Both Countries are ready for PEACE and continued Trade with the United States of America,” added Trump.
The Dow Jones is down by 0.33% 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.
AI-related stocks, like Nvidia (NVDA) and Microsoft (MSFT), are trading lower as investors digest the risks of OpenAI’s massive spending commitments. In addition, concerns about falling margins and increased chip competition, reflected in Broadcom’s (AVGO) earnings report, are also causing fear across the industry.
Meanwhile, all three stocks in the consumer defensive sector are trading higher, while Caterpillar (CAT) is leading industrial stocks lower. Boeing (BA) is in the green after Moody’s (MCO) raised the company’s outlook to “stable” from “negative.”
DIA Stock Moves Lower with the Dow Jones
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 $529.98, implying upside of 9.02% from current prices. The 30 holdings in DIA carry 29 buy ratings, one hold rating, and zero sell ratings.
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