Dow Jones Today: DJIA Dips on Iran Conflict as Trump Issues ‘Big Wave’ Warning

2026-03-02 18:02:37

The Dow Jones (DJIA) is trading slightly lower on Monday and has recovered nearly all of its early morning losses as investors digest the implications of strikes by the U.S. and Israel against Iran.

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President Trump noted that Iranian Supreme Leader Ayatollah Ali Khamenei was killed in the attack, along with 48 other senior leaders. He added that the operation could stretch for several weeks and that the intensity of the strikes could increase.

“We haven’t even started hitting them hard. The big wave hasn’t even happened. The big one is coming soon,” Trump told CNN on Monday.

The conflict in the Middle East has also propped up inflation risks, as Iran borders the Strait of Hormuz, which handles about 20% of global oil shipments. A blockage of the passage could send oil prices higher due to potential supply disruptions, with several shipping companies already suspending activity in the strait.

Furthermore, the risk of higher inflation has tempered rate cut expectations, with the odds of a 25 bps reduction at the March 18 Federal Open Market Committee (FOMC) meeting on the CME FedWatch tool falling to 2.6% from 7.4% on Friday.

Also adding to inflation fears was the ISM Manufacturing Purchasing Managers’ Index (PMI). Within the index, prices paid for manufacturing inputs increased by 11.5 points to 70.5, marking the highest level since June 2022. The overall index expanded for the second consecutive month, reaching 52.4 and topping the estimate of 51.8.

The Dow Jones is down by 0.03% at the time of writing.

Which Stocks are Moving the Dow Jones?

Let’s pivot to TipRanks’ Dow Jones Heatmap, which illustrates the stocks that have contributed to the index’s price action.

Tech is leading the index to the upside, driven by strong gains from Nvidia NVDA +3.12% ▲ and Microsoft MSFT +1.82% ▲ . Apple AAPL +0.73% ▲ is also in the green after introducing the iPhone 17e and the iPad Air M4.

Meanwhile, all four consumer cyclical stocks are trading lower, highlighted by Home Depot’s HD -2.17% ▼ loss of over 2%.

Elsewhere, financial stocks are mixed on the day while healthcare is taking a hit. Chevron CVX +0.81% ▲ , the lone energy stock in the index, is catching a bid from rising oil futures.

Is the Dow Jones a Good Long-Term Investment?

The SPDR Dow Jones Industrial Average ETF DIA +0.05% ▲ is an exchange-traded fund designed to track the movement of the Dow Jones. As a result, DIA is falling alongside the Dow Jones today.

Wall Street believes that DIA stock has room to rise. During the past three months, analysts have issued an average DIA price target of $561.13, implying upside of 14.58% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.

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