The Dow Jones Industrial Average (DJIA) is slipping today as the Federal Reserve Federal Open Market Committee (FOMC) meeting starts today. This meeting has the Fed weighing interest rate cuts over the next two days. Results won’t be out until Wednesday afternoon, but traders are still anxious about the central bank’s decision.
It seems likely that the Fed won’t cut interest rates during its latest FOMC meeting. This comes alongside warnings of increased inflation in the U.S. and possible slowing economic growth, which could turn into a recession. Accounting for all these factors, experts predict the Fed will only announce two interest rate cuts in 2025.
While investors may want more interest rate cuts, they seem to accept that one isn’t coming after this FOMC meeting. That has the Dow Jones down 0.47% as of this writing. This builds on a 1.18% drop over the last three months and a 1.65% decrease year-to-date.
Stocks Keeping the Dow Jones Down Today
Turning to the TipRanks DJIA heatmap tool, traders will see which stocks are weighing on the index today. Many sectors are slipping today, with major drops in the tech market. This has Cisco (CSCO) and International Business Machines (IBM) seeing the biggest losses, with Microsoft (MSFT) not far behind them. The healthcare sector sticks out with pockets of green from UnitedHealth (UNH) and Johnson & Johnson (JNJ).
How to Invest in the Dow Jones Industrial Average Index
Investors can’t take a direct stake in the Dow Jones as it’s only an index. Instead, they can buy shares listed on it. Risk-averse investors will want to stick with stocks rising today, while those made of sterner stuff might consider buying shares down Tuesday in hopes of a rebound.
Another option is buying shares of an exchange-traded fund (ETF) that tracks the DJIA. There are ETFs that bet on and against the success of the index. One popular choice in favor of the DJIA is the SPDR Dow Jones Industrial Average ETF Trust (DIA).
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