The Dow Jones (DJIA) is trading slightly higher on Monday after President Trump rejected Iran’s counterproposal to end the war.
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Trade QQQ with leverageOver the weekend, Iran issued a revised proposal to end the war, calling for a gradual reopening of the Strait of Hormuz and a commitment to to dilute its enriched uranium while transferring the remainder to another country. Tehran also sought guarantees that the uranium would be returned if negotiations break down. The U.S. had previously called for a 20-year moratorium on Iran’s uranium enrichment, but Iran pushed for a shorter timeline and refused to shut down its nuclear facilities.
“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — TOTALLY UNACCEPTABLE!” Trump said in a Truth Social post.
Brent crude (BZ), the international benchmark for oil, is up by 3% on the day as traffic through Hormuz remains at a near standstill while a solution continues to be out of reach. Prices at the pump have skyrocketed 52%, or $1.54, since the war began on February 28. In an interview with CBS, Trump said he will suspend the 18.4 cent federal gasoline tax “for a period of time” and then let it phase back in once gas prices come down. However, such a measure requires congressional approval and would cost the government roughly half a billion dollars per week.
Elsewhere, Trump is set to depart for China later this week, flanked by an entourage of CEOs including Tesla’s (TSLA) Elon Musk, Apple’s (AAPL) Tim Cook, and BlackRock’s (BLK) Larry Fink. Trump is set to meet with Chinese President Xi Jinping, marking the first time a U.S. president has visited China since 2017.
The Dow Jones is up by 0.09% 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 to the upside as semiconductor and memory stocks continue to power ahead. On the other ahead, software stocks Microsoft (MSFT) and Salesforce (CRM) continue to face pressure.
Meanwhile, the consumer cyclical and consumer defensive sectors are dragging the sector lower, highlighted by heavy loses in Procter & Gamble (PG) and Walmart (WMT). Honeywell (HON) is the top performer of the day, while Chevron (CVX) is trading higher alongside rising oil futures.
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 $573.39, implying upside of 15.52% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.