Dow Jones Today 2025: Index Drops 250 Points After Fed Raises Rates to 5.25%

The Dow Jones Industrial Average slipped 250 points, driven down by Walgreens following a profit outlook cut from rival CVS.

On this trading day, the Dow closed nearly 0.8% lower after the Federal Reserve raised interest rates to a range of 5% to 5.25%, marking the highest level since 2007. This move aims to combat persistent inflation, which remains above the Fed's 2% target. Walgreens Boots Alliance (WBA) was the biggest drag on the index, while Intel (INTC) led gains among blue-chip stocks.

Key Highlights

• The Dow Jones declined over 250 points following the Fed's tenth consecutive rate hike since March 2022.
• Walgreens shares fell more than 4% after CVS lowered its profit forecast, marking the steepest drop in the Dow.
• Intel shares rose 3%, buoyed by better-than-expected earnings results.

The Federal Reserve's ongoing rate increases reflect its commitment to reducing inflation, which peaked at a 40-year high last summer. Fed Chair Jerome Powell emphasized that while inflation is easing, it remains elevated and achieving the 2% goal will take time.

Walgreens Boots Alliance's stock dropped significantly, down 17% over the past year, as the company's outlook was overshadowed by CVS's profit warning. Meanwhile, Amgen (AMGN) shares declined nearly 3% after its acquisition target, Horizon Therapeutics (HZNP), missed quarterly earnings estimates.

Shares of JPMorgan Chase (JPM) slipped almost 1% following its $10.6 billion acquisition of First Republic Bank, amid continued pressure on regional bank stocks.

Intel (INTC) emerged as the Dow's top performer, gaining 3% after reporting its largest quarterly loss ever, yet surpassing Wall Street's expectations. The stock surged 8% in after-hours trading post-earnings announcement.

Walt Disney (DIS) saw a modest gain of under 1%, recovering slightly after a decline triggered by a Hollywood writers' strike that affected media stocks.

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