The Dow Jones (DJIA) is trading lower on Wednesday, driven by weakness in the tech sector ahead of the new year.
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President Trump is expected to interview Fed Governor Christopher Waller today to head the central bank, according to the Wall Street Journal. Ahead of the interview, Waller told CNBC’s “Squawk Box” that a soft labor market calls for rate cuts, adding that rates are still 50 to 100 bps above the neutral rate. When rates are neutral, they neither stimulate nor restrict growth. Trump previously stated that his pick to replace current Fed Chair Jerome Powell should support rate cuts.
“Standard central bank wisdom is you look through one-off price effects, like a tariff would be if it has inflation effects,” Waller said. “Then, the labor market’s telling me we should continue cutting rates.”
Waller’s odds of being selected by Trump have nearly tripled to 23% on prediction platform Polymarket over the past 24 hours, jumping past former Fed Governor Kevin Warsh at 19% and trailing National Economic Council Director Kevin Hassett at 53%.
Meanwhile, billionaire and Bridgewater Associates founder Ray Dalio and his wife, Barbara, have pledged to seed ‘Trump Accounts’ for approximately 300,000 children in Connecticut who live in zip codes with a median income below $150,000. The pair will give $250 to each account, which will provide children born between 2025 and 2028 with a $1,000 federal grant beginning on July 4, 2026.
“Barbara and I believe strongly in the importance of equal opportunity and believe this initiative is an important step in that direction,” Dalio said. Earlier this month, Dell (DELL) founder Michael Dell and his wife, Susan, pledged $6.25 billion to the program.
The Dow Jones is down by 0.20% 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.
Nvidia (NVDA) is leading the tech sector lower amid renewed fears of an AI bubble and elevated valuations. Shares of the semiconductor leader have fallen by nearly 8% over the past month. Industrial leader Caterpillar (CAT) is also taking a tumble, although CAT is still on track for a strong 2025 with a year-to-date return of 56%.
Meanwhile, Chevron (CVX), the lone energy stock in the Dow Jones, is trading higher alongside rising oil futures, while Salesforce (CRM) is catching a bid after inking a partnership with Novartis (NVS).
DIA Stock Moves Lower with the Dow Jones
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 $541.19, implying upside of 12.47% from current prices. The 30 holdings in DIA carry 29 buy ratings, one hold rating, and zero sell ratings.
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