Dow Jones Slumps on Trump's Iran Rejection Amid Rising Oil Prices

The Dow Jones Industrial Average (DJIA) fell by 0.66% on Monday as investors reacted to President Trump's rejection of a truce offer from Iran. The offer, which included a seven-day ceasefire and a phased reopening of the Strait of Hormuz, was turned down by Trump, who stated that 'they want to make a deal, but it is not the deal that I want to make.'

The US-Iran conflict has led to rising oil prices, with Brent crude up 2% to $106 per barrel. This increase in oil prices has contributed to the rise in Treasury yields, which have climbed to their highest level since 2007 at 5.25%. The Fed's next rate decision on October 28 is expected to be a 25-basis-point hike, with traders assigning 72.5% odds.

Nvidia was the top-performing stock in the index after announcing an increased buyback program of $150 billion. However, other tech stocks such as Microsoft and Amazon were under pressure. Boeing fell nearly 5% due to a software bug in its 737 MAX aircraft that can disable autopilot during certain landings.

The SPDR Dow Jones Industrial Average ETF (DIA) is tracking the movement of the DJIA and has been affected by the decline. Analysts have set an average price target of $609.01 for DIA, indicating potential upside of 18.15% from current prices.