The Dow Jones (DJIA) is trading lower as tensions between the U.S. and Iran in the Strait of Hormuz climb.
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Forget margin or options. Here's how the pros trade QQQOn Thursday, President Trump ordered the U.S. Navy to “shoot and kill” boats laying mines in the waterway, signaling the latest attempt to reopen the shipping route and ease the oil supply shock caused by its closure. “There is to be no hesitation,” he said in a Truth Social post. “Additionally, our mine ‘sweepers’ are clearing the Strait right now.”
Traffic through Hormuz has remained at a near standstill since the beginning of the U.S.-Iran war on February 28. In an effort to pressure Iran to reopen the passage, the U.S. initiated a blockade on vessels entering and exiting Iranian ports. That hasn’t sat well with Iran, which has refused to engage in peace talks until the U.S. clears the blockade.
Trump has remained adamant that the blockade will stand until the two sides are able to reach a deal. In a separate post, he also accused Iran’s leadership of “having a very hard time figuring out who their leader is.” Sentiment is divided among Iran’s leadership, with the Islamic Revolutionary Guard Corps (IRGC) taking a hardline stance while other officials appear more open to negotiations.
Elsewhere, initial jobless claims for the week ended April 18 increased by 6,000 to 214,000, above the consensus estimate of 210,000. Continuing jobless claims rose by 12,000 to 1.821 million and topped the expectation of 1.816 million. Initial jobless claims track new layoffs, while continuing claims measure the number of people still receiving unemployment benefits and reflect ongoing unemployment.
The Dow Jones is down by 0.23% 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.
Within tech, software stocks Microsoft (MSFT), IBM (IBM), and Salesforce (CRM) are tumbling lower following a disappointing earnings report from ServiceNow (NOW) that reignited fears of AI disruption.
The rest of the Dow Jones has remained largely insulated from the pressure, with consumer defensive and healthcare stocks leading the index higher. Caterpillar (CAT) is up nearly 4% after the industrial equipment company raised its quarterly dividend to $1.51 per share, while American Express (AXP) is trading lower after reporting its first-quarter earnings.
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 $555.54, implying upside of 12.46% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.