The Dow Jones (DJIA) was up by as much as 0.6% on Tuesday, although the index has since erased all of its gains and is now trading in negative territory.
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Before the market open, ADP announced that private payrolls grew by 22,000 in January, badly missing the consensus estimate of 45,000 and falling from 41,000 in December. The U.S. added a total of 398,000 jobs in 2025, down from 771,000 in 2024. ADP also said that the median annual pay for job stayers was $61,800, up by 4.5% year-over-year, while the annualized pay growth for job changers fell to 6.4% from 6.6%. “While we’ve seen a continuous and dramatic slowdown in job creation for the past three years, wage growth has remained stable,” said ADP chief economist Nela Richardson.
Meanwhile, tech and software stocks continue to sell off over worries of over-investment in the AI space. The iShares Expanded Tech-Software Sector ETF (IGV) has shed 12.5% over the past week as investors digest the implications of AI’s competitive threats to software-as-a-service (SaaS) companies.
“Over the last few months, the market has clearly shifted from the ‘every tech stock is a winner’ mindset to something far more brutal: a true winners and losers landscape,” said Jim Reid, Global Head of Macroeconomic Research at Deutsche Bank. However, Nvidia (NVDA) CEO Jensen Huang sought to ease fears, characterizing the belief that AI will replace software tools as “the most illogical thing in the world.”
Elsewhere, President Trump spoke with Chinese President Xi Jinping over the phone this morning and covered a wide range of topics, including Taiwan, the Ukraine-Russia war, and trade. Trump added that China has agreed to purchase 25 million tons of soybeans next season, while Xi stressed that Taiwan would never be separated from China.
The Dow Jones is down by 0.07% 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 and International Business Machines (IBM) are leading the tech sector to the downside. Nvidia is facing pressure following reports that shipments of its H200 chips to China were halted due to a U.S. national security review.
Microsoft (MSFT) and Apple (AAPL), two other members of the Magnificent 7 group, are in the green, while Amazon (AMZN) is down by over 2%. Earlier today, Goldman Sachs (GS) maintained its AAPL price target of $330 and highlighted the company’s strong App Store sales growth.
Elsewhere, Disney (DIS) is recovering from an earnings plunge, while both Caterpillar (CAT) and UnitedHealth Group (UNH) are down by over 3%.
Is DIA Stock 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 $559.87, implying upside of 13.61% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.
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