The Dow Jones (DJIA) is trading lower on Wednesday as investors weigh the latest developments from the U.S.-Iran war.
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Trade QQQ with leverageThe two countries have reached an “in principle agreement” to extend the ceasefire past the April 21 deadline and meet for a second round of talks, a regional official told the Associated Press. Mediators are pushing to extend the ceasefire by two weeks, with a team led by Pakistani Field Marshal Asim Munir arriving in Tehran to negotiate with Iran.
Furthermore, the U.S. and Iran are in direct communications and have exchanged draft proposals. “They were on the phone and backchanneling with all the countries and they are getting closer,” a U.S. official told Axios.
President Trump expects the war to resolve soon and told Fox News that the conflict is “very close to being over.” He added that in-person talks could occur within the next two days with Islamabad as a likely venue. U.S. officials echoed his statement, although a date has not been established yet.
At the same time, Iran has warned that a prolonged blockade of its ships risks “a prelude to a breach of the ceasefire.” The blockade began on Monday, targeting vessels entering and leaving Iranian ports and cutting off Iran from international trade by sea.
“In less than 36 hours since the blockade was implemented, US forces have completely halted economic trade going into and out of Iran by sea,” said U.S. Central Command Admiral Brad Cooper.
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.
The tech sector is leading the index higher on Wednesday, highlighted by strong gains from Microsoft (MSFT), Salesforce (CRM), and Apple (AAPL). On the other hand, all stocks within the consumer defensive, healthcare, and industrial sectors are trading lower as investors shift away from a defensive stance.
Elsewhere, the financials sector is showing split performance, with American Express (AXP) leading to the upside and JPMorgan Chase (JPM) lagging. Nike (NKE) is up by over 3% following insider buys from President and CEO Elliott Hill and Apple CEO Tim Cook.
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 $553.64, implying upside of 14.53% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.