The Dow Jones Industrial Average (DJIA) dropped today alongside the release of the January Consumer Price Index (CPI) report. That’s due to inflation during the month increasing more than experts predicted. That’s true for month-to-month and year-over-year inflation data.
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This has investors worried that the Federal Reserve will stick to its plans to limit interest rate cuts this year. That follows comments from Fed Chairman Jerome Powell yesterday when he said the central bank was in no rush to reduce interest rates. This means it could be months before more interest rates are announced.
Today’s news has shaken investor confidence and hit the stock market as many shares are falling. That translates to a 0.77% drop for the Dow Jones today, which is still up 4.82% year-to-date.
Which DJIA Stocks Were Hit the Hardest?
Turning to the TipRanks DJIA heatmap tool, investors will see which stocks are doing the most damage to the index today. The majority of sectors are in the red as the January CPI data has far-reaching effects on the market. Salesforce (CRM), Home Depot (HD), and Caterpillar (CAT) are among the stocks taking the biggest beatings on Wednesday.
How to Invest in the Dow Jones Index
Investors can’t take a direct stake in the Dow Jones as it’s only an index. Instead, they might consider buying shares listed on it. With today’s CPI data weighing on shares, this could present investors with attractive entry points into several stocks today.
Another option is investing in an exchange-traded fund (ETF) that tracks the DJIA. There are plenty of options to choose from with ETFs that bet on and against the index. One popular choice among traders is the SPDR Dow Jones Industrial Average ETF Trust (DIA).
