Dow Jones Today: DJIA Slumps on Prolonged U.S.-Iran Risk as Strait of Hormuz Traffic Plummets

The Dow Jones (DJIA) is down by over 1% on the fourth day of the U.S.-Iran conflict as risk‑off sentiment pushes investors into safer assets and weighs on the stock market.

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President Trump cautioned that the U.S. has enough ammunition to engage in a sustained war after previously saying that the conflict could last between four and five weeks.

“As was stated to me today, we have a virtually unlimited supply of these weapons,” Trump said in a Truth Social post. “Wars can be fought ‘forever,’ and very successfully, using just these supplies (which are better than other countries finest arms!).”

Economists have warned that disruptions to the Strait of Hormuz, which borders Iran, could send both oil prices and inflation higher while dampening consumer sentiment. The passage accounts for about 20% of global oil shipments, with ship traffic already down by over 80% since the U.S. and Israel began launching missiles at Iran over the weekend. In addition, some shipping companies have completely suspended operations in the strait.

Adding to the pressure is a threat from Iranian commander Ebrahim Jabari, who warned that ships crossing the strait would be set on fire. “The strait (of Hormuz) is closed. If anyone tries to ​pass, the heroes of the Revolutionary Guards and the regular navy will set ​those ships ablaze,” he said.

Wall Street has largely remained cool-headed in light of elevated geopolitical tensions, arguing that long-term prospects remain intact despite short-term volatility. Analysts have maintained their average year-end S&P 500 (SPX) price targets, implying upside of roughly 10% from current levels. “We would look for a 1-2 week decline in risk assets, creating a buy-the-dip opportunity as the market looks through the initial pullback,” said traders at JPMorgan.

The Dow Jones is down by 1.19% 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 stocks are mixed on the day, with Nvidia (NVDA) leading to the downside and Salesforce (CRM) up by about a percent. This morning, Wedbush raised its NVDA price target to $300 from $230, citing the company’s strong fourth-quarter data center revenue and guidance.

Apple (AAPL) is also trading lower after introducing new MacBook Air and Pro models powered by proprietary M5 chips. Preorders start on March 4 with the models available in stores on March 11.

Elsewhere, all four consumer cyclical stocks are in the red on inflation concerns. All of the stocks in the healthcare and industrial sectors are in negative territory as well.

Is the Dow Jones a Good Long-Term Investment?

The SPDR Dow Jones Industrial Average ETF (DIA) 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 $561.63, implying upside of 16.33% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.

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