The Dow Jones Industrial Average (DJIA) is slipping today as the Federal Reserve’s Federal Open Market Committee (FOMC) kicks off its two-day meeting. During this session, the Fed will deliberate on potential interest rate cuts. While the results won’t be announced until Wednesday afternoon, traders remain on edge about the central bank’s decision.
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It appears unlikely that the Fed will cut interest rates during this FOMC meeting. This expectation comes amid rising inflation concerns in the U.S. and fears of slowing economic growth, which could potentially lead to a recession. Considering these factors, experts now predict the Fed will announce only two interest rate cuts in 2025.
While investors may be hoping for more aggressive rate cuts, they seem to accept that one isn’t forthcoming this time. As a result, the Dow Jones is down 0.47% as of this writing, adding to its recent decline—1.18% over the past three months and 1.65% year-to-date.
Stocks Dragging the Dow Jones Down Today
Using the TipRanks DJIA heatmap tool, traders can see which stocks are weighing on the index. Several sectors are underperforming, with tech taking the hardest hit. Cisco (CSCO) and International Business Machines (IBM) are posting the largest losses, followed closely by Microsoft (MSFT). However, the healthcare sector is showing some resilience, with UnitedHealth (UNH) and Johnson & Johnson (JNJ) trading in positive territory.
How to Invest in the Dow Jones Industrial Average Index
Since the DJIA is an index, investors cannot buy it directly. Instead, they can purchase shares of the individual companies listed on it. Risk-averse investors may want to focus on stocks that are rising today, while more aggressive traders might consider buying shares that are down in hopes of a rebound.
Another option is investing in exchange-traded funds (ETFs) that track the DJIA’s performance. One popular ETF that bets on the index’s success is the SPDR Dow Jones Industrial Average ETF Trust (DIA). There are also inverse ETFs available for those looking to profit from the index’s potential decline.
