Dow Jones Slips at the Start of 2025 as the China Trade War Weighs on the Index

The Dow Jones Industrial Average (DJIA) isn’t doing so hot today as the index slips at the start of 2025. This is the first day of trading for the new year and investors were hopeful it would shake off negative momentum from December. However, it doesn’t look like that will happen anytime soon.

Factors affecting the DJIA today include expectations for fewer interest rate cuts from the Federal Reserve this year. On top of that, the trade war with China is a key concern for investors as President-elect Donald Trump prepares to start his term later this month. Trump is planning to keep that trade war going with heavy tariffs on China.

This news brings a 0.62% drop to the Dow Jones Industrial Average today. While the index will likely still gain in 2025, it might not see increases as strong as in 2023 and 2024.

Stocks Dragging the Dow Jones Down Today

Turning to the TipRanks heatmap tool, traders can see which stocks are hitting the DJIA index the hardest today. Tech stocks are taking the biggest beating today, which makes sense as the trade war with China strongly affects them. Apple (AAPL) is a prime example with iPhone sales in China falling to a new low. Also, high interest rates majorly affect these shares as they fit into the growth stocks category.

How to Invest in the Dow Jones Industrial Average

Traders can’t take a direct stake in the Dow Jones as it’s only an index. Instead, they might consider a stake in companies listed on it. Investors who believe tech stocks will rally in 2025 might use today as a low entry point into those shares.

Another option is investing in an exchange-traded fund (ETF) that tracks the Dow Jones. There are options for betting on and against the index. One popular one is the SPDR Dow Jones Industrial Average ETF Trust (DIA) but there are several available.

See more Dow Jones ETFs