The Dow Jones Industrial Average (DJIA) slipped today after President Donald Trump made more threats concerning tariffs. The President confirmed plans to introduce tariffs on Mexico and Canada at the start of February. Trump plans to add a 25% tariff to these countries as part of his economic plans. He’s also considering more tariffs on China but hasn’t revealed the exact details yet.
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These tariffs have economists and investors worried. Many believe President Trump’s plan will harm the economy by increasing inflation. That’s something investors would rather avoid as inflation has finally started to cool. It could also harm the chance of interest rates decreasing.
Trump’s tariff talk hit the DJIA today, dropping the index 0.08% as of this writing. However, the Dow Jones is still up 4.75% year-to-date and 17.13% over the past 52 weeks.
What Stocks Are Hitting the DJIA Today
Turning to the TipRanks Dow Jones heatmap tool, traders can see what’s weighing the index down on Friday. The technology sector, a large portion of the index, is grey today with Intel (INTC) deep in the red. American Express (AXP) is also dragging the DJIA lower with a 2.66% drop following its latest earnings results. Disney (DIS) and Walmart (WMT) are helping limit the damage to the index with gains.
How to Invest in the Dow Jones
Investors can’t take a direct stake in the Dow Jones as it’s only an index. Instead, they might consider purchasing shares of companies listed on it. If they believe INTC and AXP will bounce back, buying their dips might be a good idea.
Another option is acquiring a stake in an exchange-traded fund (ETF) that tracks the DJIA index. Investors can pick between ETFs betting on and against the DJIA. One popular choice is the SPDR Dow Jones Industrial Average ETF Trust (DIA) but there are plenty of ETFs to choose from.
