The Dow Jones (DJIA) is trading lower on Monday as investors prepare for the Fed’s rate cut decision on Wednesday. A 25 bps rate cut is the widely expected outcome, with CME’s FedWatch tool pricing in an 87.6% probability for the scenario.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Meanwhile, President Trump is preparing to consolidate AI regulations across the country by scrapping state-specific laws through an executive order later this week.
“There must be only One Rulebook if we are going to continue to lead in AI,” Trump said in a Truth Social post on Monday. “We are beating ALL COUNTRIES at this point in the race, but that won’t last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS.”
Trump’s announcement follows a visit from Nvidia (NVDA) CEO Jensen Huang to Washington, D.C. last week, where he met with lawmakers and Trump to advise against excessive AI restrictions.
In other news, Morgan Stanley Chief Investment Officer Mike Wilson believes that robust earnings and a stronger-than-expected labor market will help drive stocks higher. “As we’ve discussed in detail over the past couple of months, we think the odds of moderately weaker, lagging labor data over the next several months are high, but believe the odds of acutely weaker jobs data (i.e., a non-linear unemployment rate rise) are low,” Wilson said. “This is a bullish set-up for stocks.”
Wilson singled out consumer discretionary goods and small-cap stocks as contrarian picks, highlighting their recent resilience and expecting momentum to carry into next year. Strong Black Friday sales and third-quarter revenues support his outlook.
The Dow Jones is down by 0.47% 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.
International Business Machines (IBM) is in the green after the company announced it would purchase Confluent (CFLT) for $31 per share in a deal worth $11 billion. “With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI,” said IBM CEO Arvind Krishna.
Meanwhile, Apple (AAPL) is trading slightly lower, shrugging off two price target hikes. Wedbush raised its AAPL stock target to $350 from $320, while Evercore raised its target to $325 from $320.
Elsewhere, Boeing (BA) announced the completion of its acquisition of Spirit AeroSystems (SPR), while Nike (NKE) is leading the consumer cyclical sector to the downside.
DIA Stock Moves Lower with the Dow Jones
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 $534.88, implying upside of 11.88% from current prices. The 30 holdings in DIA carry 29 buy ratings, one hold rating, and zero sell ratings.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.