The Dow Jones (DJIA) is trading slightly lower on Tuesday ahead of the government shutdown deadline in less than 12 hours.
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The odds of a shutdown by October 1 are higher than ever on prediction platform Polymarket, rising by 9% during the past 24 hours to 82%. On Monday, a meeting between President Trump and top congressional leaders from both parties failed to yield any material progress, with Senate Democratic Leader Chuck Schumer saying afterward that the parties still have “very large differences.”
“I think we’re headed to a shutdown,” added Vice President J.D. Vance, further stirring fears of the first shutdown since December 2018.
Disagreements between the Democrats and Republicans haven’t done much to bolster consumer confidence. In September, the preliminary Consumer Confidence Index (CCI) dropped to a 5-month low of 94.2. In addition, September’s decline of 3.6 points was the largest monthly decline in a year. A reading of 100 or above signals optimism about the economy, while a reading of 80 or below points to pessimism.
“Consumers’ assessment of business conditions was much less positive than in recent months, while their appraisal of current job availability fell for the ninth straight month to reach a new multiyear low,” said Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board. However, almost half of surveyed consumers remain optimistic about the stock market, with 48.9% expecting higher stock prices in the next 12 months.
Finally, Trump is set to announce ‘TrumpRx,’ a website that will sell drugs at a discounted price negotiated by the government, according to the Wall Street Journal. Trump, alongside Pfizer (PFE) CEO Albert Bourla, is expected to make the announcement later today.
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.
Nvidia (NVDA) is leading the tech sector to the upside and has secured a new 52-week high of $187.35. This morning, Citigroup raised its NVDA price target to $210 from $200, citing stronger-than-expected AI infrastructure spending and pointing out that the company’s GTC Washington event from October 27-29 could act as a positive catalyst. On the other hand is Salesforce (CRM), which is down by about 3%.
Healthcare stocks are giving the Dow Jones a boost. Amgen (AMGN) is trading higher after announcing a $650 million manufacturing investment in the U.S., while Merck (MRK) received a positive recommendation from the European Medicines Agency for its ENFLONSIA drug.
Elsewhere, American Express (AXP) is in negative territory alongside Goldman Sachs (GS) and JPMorgan Chase (JPM).
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 $503.41, implying upside of 8.86% from current prices. The 31 holdings in DIA carry 29 buy ratings, two hold ratings, and zero sell ratings.
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