The Dow Jones (DJIA) recovered its losses on Monday after U.S.-Iran peace talks in Islamabad over the weekend failed to yield a resolution to the war.
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Trade QQQ with leverageThe two sides were unable to come to an agreement on several terms, including the fate of Iran’s enriched uranium stockpile, the reopening of the Strait of Hormuz, and the release of frozen Iranian funds.
Following the negotiations, President Trump announced that the U.S. would blockade Hormuz and remains “fully ‘LOCKED AND LOADED’.” The move is aimed at restricting Iran’s oil exports, cutting off a key source of revenue and increasing pressure on the country to resume peace talks. The U.S. Central Command (CENTCOM) later clarified that the blockade would only affect vessels entering and exiting Iranian ports.
“Enjoy the current pump figures,” said Iranian Parliament Speaker Mohammad Bagher Ghalibaf in an X post. “With the so-called ‘blockade’, Soon you’ll be nostalgic for $4–$5 gas.”
Pakistan, Egypt, and Turkey, acting as mediators, continue to engage with the U.S. and Iran in a bid to resolve outstanding differences before the two-week ceasefire expires on April 22, a U.S. official told Axios. Another official told the Wall Street Journal that a second round of talks could be held in the coming days.
The Dow Jones is up by 0.1% 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.
Within tech, software stocks are recovering from a brutal selloff over the past few days, with Microsoft (MSFT), IBM (IBM), and Salesforce (CRM) all up by over 2%. That comes despite surging energy futures risking another bout of inflation, with Chevron (CVX) rising in sympathy.
Inflation fears are also pressuring the consumer cyclical sector. This morning, HSBC lowered its Nike (NKE) price target to $48 from $90, driven by a slow business recovery and strong competition.
Elsewhere, the financials sector is showing mixed performance, with American Express (AXP) leading to the upside. Goldman Sachs (GS) is down by over 2%, despite reporting a beat on its first quarter revenue and adjusted EPS this 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 $558.41, implying upside of 16.74% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.