The Dow Jones (DJIA) is trading lower on Tuesday alongside rising geopolitical uncertainty driven by President Trump’s interest in Greenland.
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Trump hasn’t backed down after announcing tariffs on eight European countries that will last until the U.S. acquires Greenland. The tariffs will begin on February 1 at 10% before increasing to 25% on June 1. “As I expressed to everyone, very plainly, Greenland is imperative for National and World Security,” he said in a Truth Social post. “There can be no going back — On that, everyone agrees!”
Trump is scheduled to speak and meet with global leaders at the World Economic Forum Annual Meeting in Davos, Switzerland, on Wednesday. He added that he will deliver “a lot of messages” as tensions soar.
European Union leaders will meet on Thursday for an emergency summit to discuss countermeasures to the new tariffs, with European Commission President Ursula von der Leyen promising an “unflinching, united and proportional” response. The 27-nation bloc is currently considering reviving a $108 billion tariff package that was shelved last year after the two sides reached a trade agreement. Also on the table is the anti-coercion instrument, which allows the EU to impose regulatory tariffs, tax foreign companies, and limit market access when other countries attempt to coerce the bloc politically or economically.
Finally, a monthly survey from Bank of America showed that fund managers are the most bullish since July 2021. In addition, their cash balances are at a record-low 3.2%, while fears of a recession are at a two-year low. The survey collected responses from 196 participants with a collective $575 billion in assets under management.
The Dow Jones is down by 1.37% 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.
Every single stock in the tech and consumer cyclical sectors is trading lower, with Nvidia (NVDA) leading the decline. China is still weighing approval for the semiconductor leader’s H200 chip exports, with Taiwanese server manufacturer Inventec warning that the shipments could face delays.
Furthermore, Apple (AAPL) is down by nearly 2% after Citigroup lowered its price target to $315 from $330. On the other hand, Evercore ISI added AAPL stock to its “Tactical Outperform” list.
Elsewhere, UnitedHealth Group (UNH), Procter & Gamble (PG), and Coca-Cola (KO) are rising, keeping the Dow Jones afloat. 3M (MMM) is the index’s biggest loser after reporting its fourth-quarter earnings.
Is DIA Stock 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 $549.33, implying upside of 12.75% from current prices. The 30 holdings in DIA carry 29 buy ratings, one hold rating, and zero sell ratings.