The Dow Jones Industrial Average (DJIA) slipped on Wednesday as investors reacted to news about chip export bans to China. This ban doesn’t allow U.S. semiconductor companies to export advanced chips to China due to security concerns.
Stay Ahead of the Market:
Nvidia (NVDA) is among the companies suffering from this chip export ban. It warned that the ban on exports of its H20 AI chip will result in a $5.5 billion charge for the company. Investors weren’t pleased with that news, sending shares of NVDA stock 7.29% lower on Wednesday morning.
This news had a ripple effect, hitting other tech stocks and dragging the Dow Jones Index down 0.23% today. That expands on the DJIA’s 7.17% year-to-date drop.
Dow Jones Index Stock Movement Today
As mentioned, tech stocks are a big reason why the Dow Jones index fell today. The sector has suffered on the chip export news, as Microsoft (MSFT) and Apple (AAPL) joined Nvidia with drops today. The consumer cyclical sector also saw drops from Amazon (AMZN), which has dedicated large sums to advancing its AI capabilities.
How to Invest in the Dow Jones Index
There are a few options available to traders who want to invest in the Dow Jones index. While a direct stake can’t be taken, traders might consider buying shares listed on it. Some might go for shares up today to ride those rallies, while others could use today’s dips as entry points ahead of potential rebounds.
A third option is buying shares of an exchange-traded fund (ETF) that tracks the Dow Jones. One of the most popular choices is the SPDR Dow Jones Industrial Average ETF Trust (DIA). Those who want to bet against the DJIA’s success could invest in the ProShares UltraPro Short Dow30 (SDOW).