The Dow Jones (DJIA) is trading lower on Wednesday as the U.S.-Iran war stretches into its third month.
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Forget margin or options. Here's how the pros trade QQQPresident Trump has rejected Iran’s peace proposal that included an end to the war and a reopening of the Strait of Hormuz in exchange for the U.S. lifting its blockade on Iranian ports, according to Axios. Instead, the U.S. will maintain the blockade until the two sides are able to reach an agreement on the future of Iran’s nuclear program.
“The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig. And it is going to be worse for them,” Trump said. He hasn’t ordered a resumption of strikes against Iran, although the U.S. Central Command has readied a plan for a series of “short and powerful” attacks to pressure the regime into negotiations if necessary.
Elsewhere, the Fed will announce its interest rate decision at 2 p.m. Eastern Time today. According to the CME FedWatch tool, the central bank is virtually guaranteed to hold rates steady with 100% odds. The odds were much lower before the start of the war, which raised the risk of sticky inflation and economic uncertainty. Last month, inflation, as measured by the Consumer Price Index (CPI), rose 0.9%, marking the largest monthly gain since June 2022. Gas prices were responsible for nearly three-quarters of the monthly increase.
The Fed meeting will likely be Jerome Powell’s last as the Chair. Earlier today, the Senate banking committee confirmed Kevin Warsh to replace Powell, setting him up for the full Senate vote. Powell’s term as a Chair is set to expire on May 15, although his Governor position won’t end until January 31, 2028.
The Dow Jones is down by 0.6% 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.
Visa (V) is the top performer on Wednesday, driven by a strong earnings report. The payment processor reported revenue growth of 17.1% to $11.23 billion, topping the consensus estimate of $10.74 billion.
Elsewhere, five of the six tech stocks in the Dow Jones are trading lower. Only Cisco (CSCO) is in positive territory.
Finally, investors are preparing for a busy week of earnings, with Amazon (AMZN) and Microsoft (MSFT) set to deliver after the closing bell. Apple (AAPL) will follow up on Thursday after the market close.
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 $559.23, implying upside of 14.54% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.