The Dow Jones Industrial Average (DJIA) index is rebounding today after a selloff caused massive drops last week. Those were kicked off by President Donald Trump’s Liberation Day event, which included new tariffs.
Markets started recovering this week alongside reports that the President could pause tariffs for up to 90 days. Today’s movement comes after sources claimed Trump has held negotiations with other world leaders to reduce the effect of tariffs. This has many traders hoping the trade war will de-escalate and that markets will stabilize.
With this news comes a Dow Jones index rally, sending it 2.42% higher as of Tuesday afternoon. That’s a welcome change after last week’s tantrum and helps poke away at a 9.47% drop over the last three months.
How Does This Affect DIA Stock?
The SPDR Dow Jones Industrial Average ETF Trust (DIA) is an exchange-traded fund (ETF) that tracks the Dow Jones index. That means it rises and falls alongside the DJIA. With today’s movement causing the index to rise, shares of DIA stock are jumping 2.56% alongside it.
Other ETFs that track the Dow Jones index are also rising today. There are also ETFs that short the index, in case investors want to bet against it. Those, including ProShares UltraPro Short Dow30 (SDOW), move opposite if the index, sending these ETFs lower today.
Is DIA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the SPDR Dow Jones Industrial Average ETF Trust is a Moderate Buy based on the consensus ratings over 31 stocks held in the ETF. That includes 29 Buy and two Hold ratings over the last three months. It also comes with an average price target of $489.19, which is a potential 26.35% upside for DIA stock.
