The Dow Jones (DJIA) is trading lower on Monday as tensions in the Middle East persist.
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Forget margin or options. Here's how the pros trade QQQThe United Arab Emirates (UAE) issued a missile warning, the first since the U.S. and Iran reached a ceasefire, after one of its oil tankers was hit by an Iranian drone attack. In addition, Iran has also launched drone attacks at an oil industrial site in Fujairah, a city in the UAE. Washington has not yet issued a statement on the attack, and it’s unclear if it constitutes a violation of the ceasefire.
Over the weekend, President Trump announced Project Freedom, a new initiative that seeks to safely escort ships through Hormuz without the direct participation of the U.S. Navy. “The Ship movement is merely meant to free up people, companies, and Countries that have done absolutely nothing wrong — They are victims of circumstance,” Trump said in a Truth Social post.
In response, Iran warned that any U.S. interference in Hormuz would be viewed as a ceasefire violation. Negotiations between the two sides have stalled in recent weeks, with neither side willing to give in. The future of Iran’s stockpile of enriched uranium and nuclear program remains a key sticking point.
Tensions in Hormuz have continued to bloat gas prices. On Monday, the average price at the pump jumped to $4.46 per gallon, a 50% gain from the $2.98 seen on February 28 at the onset of the war. That marks the highest level since July 2022 and risks driving inflation higher ahead of the busy summer travel season.
The Dow Jones is down by 0.95% 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.
Tech stocks are mostly in the red, although software stocks, including Salesforce (CRM) and Cisco (CSCO), continue to rally.
Elsewhere, Amazon (AMZN) is in the green after announcing the launch of Amazon Supply Chain Services (ASCS) to all companies, providing them with end-to-end logistics services. Furthermore, industrial stocks are placing pressure on the index, with Caterpillar (CAT) leading to the downside. Chevron (CVX) is rising alongside higher 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 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 $571.98, implying upside of 16.85% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.