The Dow Jones (DJIA) is trading lower on Friday, shrugging off six new trade deals amid rising uncertainty over a December rate cut.
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The U.S., Switzerland, and Liechtenstein have agreed to a framework trade deal that will lower the tariff on imports from the two countries to 15%. In return, Switzerland has agreed to invest at least $200 billion into the U.S. over the next five years to spur manufacturing, research, and development growth. In addition, Liechtenstein will invest at least $300 million into the U.S. with a goal of boosting the number of U.S. jobs created by its private sector by 50% over the next five years. The three countries seek to finalize the agreement by the first quarter of 2026. President Trump imposed a 39% tariff rate on Switzerland in August, the highest of any developed nation.
Furthermore, the U.S. announced trade deals with El Salvador, Argentina, Ecuador, and Guatemala that will allow U.S. exports, such as products in the agriculture, medical, and chemical sectors, to flow into the four countries more easily. U.S. Trade Representative Jamieson Greer added that the U.S. will also slash tariffs on food items, including bananas, coffee, and meat, from the Latin American countries. In addition, tariffs on food items from countries with which the U.S. hasn’t signed a trade deal will be eligible for a tariff reduction or elimination as well.
Meanwhile, the odds of a rate cut at the December 9-10 Federal Open Market Committee (FOMC) meeting have plunged during the past week, falling to 43.6% from 66.9% on CME’s FedWatch tool. In recent days, several Fed officials have expressed doubts about a cut, citing persistent inflation amid an economic data blackout stemming from the government shutdown.
“However, cuts could have longer-lasting effects on inflation as our commitment to our 2% objective increasingly comes into question,” said Kansas City Fed President Jeff Schmid on Friday.
The Dow Jones is down by 0.53% 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) is catching a bid ahead of its highly-anticipated earnings report next week. This morning, Morgan Stanley raised its NVDA price target to $220 and expects the semiconductor company to report a strong quarter boosted by heavy Blackwell chip demand.
Meanwhile, Walmart (WMT) was down by as much as 4% during the premarket but has since recovered the majority of its losses. The retailer announced that its CEO, Doug McMillon, will retire on January 31, 2026, and be replaced by John Furner, the CEO of Walmart U.S.
Elsewhere, Merck (MRK) is trading higher after announcing that it would acquire Cidara Therapeutics (CDTX) for $9.2 billion, while four of the five financial stocks in the Dow Jones are in the red.
DIA Stock Moves Lower with the Dow Jones
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 $542.62, implying upside of 14.63% from current prices. The 31 holdings in DIA carry 29 buy ratings, two hold ratings, and zero sell ratings.
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