The Dow Jones Industrial Average Index has fallen 0.4% or by 115 points today. The index is trading lower after rising for eight consecutive trading sessions. The S&P 500 ETF has fallen 0.2%, while the Technology Select Sector SPDR has fallen 0.3% in early market trading.
Why did the Dow Jones fall today?
The recent drone attack on Saudi Arabia’s Aramco spooked investors, which sent the stock market lower. Saudi Arabia claimed that oil production has fallen 50% due to the attack, which sent oil companies’ shares higher today.
ExxonMobil (XOM) and Chevron (CVX) shares, which are part of the Dow Jones, have risen 2.5% and 2.6%, respectively. Other energy companies including ConocoPhillips, Occidental Petroleum, Schlumberger, and Marathon Oil have gained 7.4%, 6.5%, 6.5%, and 9%, respectively, today.
Oil prices will move higher in the short term due to Saudi Arabia’s supply shortage. Notably, the prices might impact consumer spending in the US and other major economies.
Several stocks are trading lower today
Apple and Microsoft have returned 0.3% and -0.9% today. IBM and Intel have fallen 0.2% and 0.8%, respectively. Investment banks Goldman Sachs and JPMorgan Chase are trading 0.3% and 0.6% lower.
The SPDR Dow Jones Industrial Average ETF (DIA) is trading at $271.54, which is 0.9% below its all-time high. DIA is trading 25% above its 52-week low. So far, DIA has returned more than 20% year-to-date.
For the Dow Jones, its impressive performance in 2019 has been driven by Apple, Home Depot, Microsoft, and Visa, which have risen 39.1%, 35.2%, 34.1%, and 33.8%, respectively. While de-escalation in the trade war fueled the recent rally, there’s a lot of uncertainty for investors.
The trade war still has to be resolved. There are concerns about China’s slowing economy and the sluggish macro environment. The yield curve has inverted, which makes investors take a cautious approach. Tech spending decelerated, which impacted several stocks including NetApp, DXC, and VMware.
Will the Dow Jones continue to move forward and reach record highs or will it undergo a significant correction due to market weakness? Stay with us for the latest updates.