Dow Jones Drops Over 225 Points in 2025 Amid Rate Hike Fears, Ending Historic 13-Day Rally
In 2025, the Dow Jones Industrial Average fell more than 225 points, breaking its 13-day winning streak as investors grow concerned that robust economic data may trigger additional interest rate hikes.
Dow Jones plunges over 225 points as investors fear strong economic growth will lead to further Federal Reserve rate increases.
In a sharp afternoon sell-off, the Dow Jones Industrial Average dropped nearly 300 points within two hours, ending its historic 13-session winning streak—the longest since 1897. The index closed down 0.65%, approximately 225 points lower.
Key Highlights
- Dow Jones declines 0.65% (225 points), marking its first negative close in 14 trading days.
- Dow Chemical surges 2% following strong Q2 earnings driven by cost reductions.
- McDonald's shares rise 1.4% after surpassing revenue and profit expectations despite signaling slower sales ahead.
- Honeywell plunges over 5% as revenue misses analyst forecasts despite a modest earnings beat.
Other major indices also retreated: the S&P 500 fell 0.6%, and the Nasdaq dropped 0.5%, as investors digested encouraging U.S. GDP data revealing faster-than-expected economic expansion. These developments heightened concerns about more aggressive Federal Reserve interest rate hikes.
Stocks on the Rise
Dow Chemical (DOW) climbed 2%, marking its third consecutive day of gains after reporting better-than-expected Q2 earnings fueled by lower operational costs.
McDonald's (MCD) shares increased 1.4% following an earnings beat with $3.17 per share versus the $2.78 estimate. However, the company cautioned investors about anticipated revenue moderation in the latter half of the year.
Intel (INTC) shares edged up 0.4% ahead of its upcoming earnings announcement.
Stocks on the Decline
Honeywell International (HON) dropped more than 5% after reporting revenue of $9.1 billion, slightly below analyst expectations of $9.2 billion, despite earnings per share of $2.23 surpassing estimates.
American Express (AXP) fell 2.2% following a $15 million settlement related to business-card sales practices, compounded by concerns over the impact of resumed student loan repayments on future earnings.
Microsoft (MSFT) shares declined 2.4%, Verizon (VZ) dropped 2.2%, and Procter & Gamble (PG) traded down 0.9% ahead of its upcoming earnings report.
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