Dow Jones Today: Index Falls Following Rate Hike

The Dow dropped 250 points as Walgreens dragged the index lower after rival CVS cut its profit outlook

By
Terry Lane
Terry Lane
Full Bio
Terry has 25 years experience in journalism and communications, reporting on a range of topics that include personal finance, telecommunications, Congress, government regulations, and criminal justice. He has also worked on technology, energy, and environmental policy issues as a congressional press secretary and owned and published a local community newspaper in North Carolina.
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Published May 03, 2023
Walgreens signage is seen at a store.

Michael M. Santiago / Getty Images

The Dow lost more than 250 points to close nearly 0.8% lower today after the Federal Reserve raised interest rates to their highest levels since 2007 and signaled inflation may be too high to warrant rate cuts any time soon. Walgreens Boots Alliance (WBA) dragged the index lower while Intel (INTC) led gainers.

Key Takeaways

  • The Dow dropped more than 250 points following a Fed rate hike that moved interest rates to a range of 5% to 5.25%.
  • Walgreens was the Dow's worst performer, as shares fell more than 4% after rival CVS cuts its profit outlook.
  • Intel was the index's best performer, rising 3% following its earnings beat last week.

Today marked the Fed's 10th consecutive rate hike since March 2022, when it began nudging them up to battle inflation that reached a 40-year high last summer. Federal Reserve Chair Jerome Powell said inflation was moderating, but warned it was still too high and there was a “long way to go” before it would return to the Fed's 2% target rate.

Walgreens Boots Alliance (WBA) declined the most of any of the 30 Dow stocks, falling more than 4% after rival CVS cut its full-year profit outlook. Walgreens shares are down 17% in the last 12 months. 

Shares of Amgen (AMGN) fell almost 3% after Horizon Therapeutics (HZNP), the biotech firm it's acquiring for $28 billion, missed first-quarter earnings estimates.

JPMorgan Chase (JPM) shares were down nearly 1% following its $10.6 billion purchase of First Republic Bank on Monday. Regional bank stocks fell again today after yesterday's nosedive.

Intel (INTC) was the Dow’s best-performing stock, rising 3% less than a week after posting its largest-ever quarterly loss. Still, the results were better than Wall Street expected and Intel stock jumped 8% overnight following its earnings report. 

Walt Disney (DIS) shares rose less than 1%, a slight rebound from yesterday when the beginning of a Hollywood writers sunk several media stocks.  

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