Dow Jones Today: DJIA Slips on Disappointing GDP and Consumer Sentiment Update

The Dow Jones (DJIA) has erased all of its morning gains and is set to end the week on a sour note as investors digest gross domestic product (GDP) and consumer sentiment updates.

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The Bureau of Economic Analysis (BEA) now expects fourth-quarter GDP to grow at an annualized rate of 0.7%, down from its previous estimate of 1.4%. The lower estimate was driven by downward revisions to federal and consumer spending, with GDP falling sharply from 4.4% in the third quarter and 3.8% in the second quarter. For the full year, GDP is expected to rise by 2.1% in 2025, down from 2.8% in 2024 and 2.9% in 2023.

“The big downward revision in GDP is a gut check going into this energy crunch, increasing the risk of stagflation,” said TradeStation global head of market strategy David Russell.

Adding to the pressure was a disappointing preliminary Index of Consumer Sentiment reading for March. During the month, sentiment fell to a year-to-date low of 55.5 as respondents expressed concern about the war in Iran and higher gas prices. Additionally, year-ahead inflation expectations rose for the first time in six months to 3.4% and remain above the Fed’s target of 2%.

January’s Personal Consumption Expenditures (PCE) Index echoed concerns of persistent inflation, with prices rising by 2.8% year-over-year, which was below the consensus estimate of 2.9%. Core PCE, which excludes volatile food and energy prices and is the Fed’s preferred gauge of inflation, notched a year-over-year jump of 3.1%, the highest since March 2024 and in line with the estimate.

The Dow Jones is down by 0.07% 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.

Nvidia NVDA -0.85% ▼ , Apple AAPL -1.43% ▼ , and Microsoft MSFT -1.39% ▼ , the three largest tech components in the index, are dragging down the index. At the same time, defensive names like Walmart WMT +0.82% ▲ , Boeing BA +2.80% ▲ , and UnitedHealth Group UNH +1.35% ▲ are contributing to the upside.

Elsewhere, rising gas prices and inflation concerns continue to hamper the consumer cyclical sector, with Amazon AMZN -1.02% ▼ leading to the downside. These factors, alongside weak consumer sentiment, could reduce spending and loan demand, contributing to further weakness in the financial sector.

Is the Dow Jones a Good Long-Term Investment?

The SPDR Dow Jones Industrial Average ETF DIA +0.07% ▲ 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 $572.07, implying upside of 22.24% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.

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