The Dow dove into negative territory for the year, tumbling nearly 300 points, or 0.86%, as regional bank stocks sunk lower and markets calibrated to yesterday's discouraging comments from Fed Chair Jerome Powell. It’s the second consecutive day the Dow has dropped more than 250 points.
- The Dow flirted with going into negative territory after dropping almost 300 points as banking fears continued to push stocks lower.
- Disney led losses after its rival Paramount reported weak advertising and the transition to streaming hurt earnings, a possible portent for Disney, which reports earnings next week.
- Intel was one of the Dow’s only winners after the company’s CEO scooped up a quarter of a million dollars of company stock.
Walt Disney (DIS), already vulnerable to the Hollywood writers strike, was the biggest loser, falling more than 3% after rival Paramount (PARA) reported disappointing earnings. Paramount ended the day down more than 28%.
Regional bank stocks continued their slide, bringing other financial sector stocks with them. American Express (AXP) fell 2.2% and JPMorgan Chase (JPM), in the process of absorbing First Republic Bank, fell 1.3%.
Goldman Sachs (GS) closed down 2.6% after it said federal regulators are looking into its role in Silicon Valley Bank's failed attempt to raise capital and avoid collapse.
Home Depot (HD), Caterpillar (CAT), and Nike (NKE) all dropped more than 2%.
Intel (INTC) was the index's best-performing stock for the second day in a row. CEO Pat Gelsinger shrugged off investors’ lackluster response to its late-April earnings beat and purchased $250,000 worth of shares. Wall Street responded and Intel shares moved up almost 2%, making it one of only six stocks to end the day in the green.
While its CEO was meeting with the vice president on AI safeguards, Microsoft (MSFT) shares moved higher after the company expanded access to its ChatGPT-powered Bing search engine. Microsoft was also reported to be working with chipmaker Advanced Micro Devices (AMD) on an artificial intelligence processor, news that pushed AMD stock up more than 6%.