The Dow Jones (DJIA) is down by over 1% on Friday after President Trump warned that he may increase China’s tariff rate after the country initiated additional rare-earth export controls earlier this week.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
“One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America,” Trump said in a Truth Social post. “There are many other countermeasures that are, likewise, under serious consideration.” Trump also said “there seems to be no reason” to meet with Chinese President Xi, as originally scheduled, at the Asia-Pacific Economic Cooperation (APEC) Summit that begins on October 31.
China said that it would begin charging U.S. ships a docking fee beginning on October 14, the same day that the U.S. will place a docking fee on Chinese ships. In addition, China’s State Administration of Market Regulation (SAMR) has hit Qualcomm (QCOM) with an antitrust investigation over its acquisition of chip firm Autotalks.
Meanwhile, the University of Michigan’s preliminary October Index of Consumer Sentiment fell to 55.0 from 55.1 in September, although the figure topped the consensus estimate of 54.0. Consumers’ year-ahead expectation of inflation fell by 0.1% to 4.6%, while long-term inflation expectations stayed steady at 3.7%.
“Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers’ minds,” said Survey of Consumers Director Joanne Hsu. “At this time, consumers do not expect meaningful improvement in these factors.”
The Dow Jones is down by 1.21% 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.
All tech stocks within the index are trading lower, with Apple (AAPL) leading the decline following Trump’s tariff threat on China. Amazon (AMZN) and Nike (NKE) are also taking a hit from the news given their dependency on Chinese suppliers.
Meanwhile, Johnson & Johnson (JNJ) is flat after the Wall Street Journal reported that the healthcare company is in talks to acquire Protagonist Therapeutics (PGTX) for an undisclosed sum. Johnson & Johnson already owns roughly 4% of the company. In other healthcare news, UnitedHealth Group (UNH) is dragging the sector lower, despite Cantor Fitzgerald reiterating its price target of $440 and “overweight” rating.
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 $514.23, implying upside of 12.03% from current prices. The 31 holdings in DIA carry 29 buy ratings, two hold ratings, and zero sell ratings.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.