The Dow Jones (DJIA) is trading lower on Tuesday as the hours tick down to President Trump’s deadline for Iran.
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Forget margin or options. Here's how the pros trade QQQTrump warned that Iran would face severe consequences if it doesn’t reopen the Strait of Hormuz by 8 p.m. Eastern Time. “A whole civilization will die tonight, never to be brought back again,” Trump said in a Truth Social post. “I don’t want that to happen, but it probably will.” He added that “something revolutionarily wonderful can happen” because of Iran’s new group of leaders.
Following his statement, Iran completely severed direct communications with the U.S., according to the Wall Street Journal. Mediators, including Pakistan, Egypt, and Turkey, are still engaged in negotiations to secure a ceasefire deal.
Hormuz, which handles roughly 20% of global oil flows, remains a key part of the discussions. On Monday, Iran rejected a ceasefire proposal drafted by the U.S. and mediators. Instead, it proposed its own terms, which include the removal of sanctions, guidelines for safe passage through Hormuz, and a permanent end to the war. Trump said the terms were “significant,” but “not good enough.”
Elsewhere, inflation expectations are on the rise as gas prices surge to multi-year highs. Consumers now expect year-ahead inflation of 3.4%, up from 3.0%, according to the Federal Reserve Bank of New York’s Survey of Consumer Expectations. Perceptions surrounding current financial situations are also under pressure, with a larger share of respondents reporting a worse financial situation compared to a year ago.
The Dow Jones is down by 0.46% 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.
Technology is facing pressure on Tuesday, with Apple (AAPL) leading to the downside. In addition, all of the companies in the consumer cyclical and consumer defensive sectors are in the red as rising oil prices continue to raise inflation concerns.
On the other hand, UnitedHealth Group (UNH) is up by over 10% after the U.S. Centers for Medicare & Medicaid Services announced that it would increase payments for Medicare Advantage plans in 2027 by an average of 2.48%. Besides UNH stock, Chevron (CVX) is the only other Dow Jones component up by at least 1%.
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 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 $557.67, implying upside of 20.11% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.