The Dow Jones (DJIA) is trading higher on Monday as investors assess the latest developments in the U.S.-Iran war.
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Forget margin or options. Here's how the pros trade QQQPresident Trump warned that the U.S. would strike Iran’s power plants and bridges if the Strait of Hormuz remains closed by Tuesday, April 7 at 8 p.m. Eastern Time, extended from the original deadline of Monday evening. The U.S., alongside Turkey, Egypt, and Pakistan serving as mediators, proposed a 45-day ceasefire as part of a two-phase deal, with the second phase focused on negotiating an end to the war, according to Axios.
Iran rejected the terms and proposed its own list of 10 terms, which includes the removal of sanctions, guidelines for safe passage through Hormuz, and a permanent end to the war. “It’s a significant step. It’s not good enough, but it’s a very significant step,” Trump told CNN.
Oil and gas prices have soared higher since the beginning of the war, with the average price of a gallon of gas in the U.S. rising 38%, or $1.14, to $4.12. That marks the highest price since August 2022, while the five-week growth rate is the fastest in 30 years.
At the same time, traffic through Hormuz has begun to tick higher as countries sign safe-passage agreements with Iran. Over the weekend, 21 ships passed through the passageway, the highest two-day total since early March. Although still far below the average of 135 ships per day, the increase shows that Iran is starting to ease restrictions for countries it considers friendly, including Iraq, China, and India.
The Dow Jones is up by 0.28% 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.
The consumer cyclical and financial sectors are leading the index higher, highlighted by Amazon (AMZN) and JPMorgan Chase (JPM). On the other hand, software stocks are weak with both Microsoft (MSFT) and Salesforce (CRM) in the red.
Elsewhere, industrial stocks are mixed on the day, while UnitedHealth Group (UNH) is the only healthcare stock trading higher. Chevron (CVX), the lone energy stock in the Dow Jones, is in negative territory, although its shares are still up by 27% year-to-date.
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 $560.18, implying upside of 20.15% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.