Dow Jones 2025 Update: Index Falls Over 300 Points Amid Banking Sector Worries
Discover why the Dow Jones Industrial Average slipped into negative territory for the year, driven by banking sector concerns and Disney's stock decline following Paramount's disappointing earnings report.
The Dow Jones Industrial Average dropped more than 300 points, influenced by Disney's decline after Paramount's weak advertising and streaming earnings.
In 2024, the Dow Jones slipped into negative territory for the year, tumbling nearly 300 points (0.86%) as regional bank stocks fell and investors reacted to Fed Chair Jerome Powell's recent remarks. This marks the second consecutive session with a drop exceeding 250 points.
Highlights
- The Dow nearly went negative for the year, pressured by ongoing banking sector fears.
- Disney's shares led losses following Paramount's poor advertising revenue and streaming transition, signaling challenges ahead as Disney prepares to report earnings next week.
- Intel stood out as one of the few gainers after CEO Pat Gelsinger purchased $250,000 in company stock, boosting investor confidence.
Walt Disney (DIS), already impacted by the Hollywood writers' strike, declined over 3% after rival Paramount (PARA) reported disappointing earnings, with Paramount's shares plunging more than 28%.
Regional bank stocks continued their downward trend, dragging financial stocks lower. American Express (AXP) fell 2.2%, while JPMorgan Chase (JPM), amid its acquisition of First Republic Bank, dropped 1.3%.
Goldman Sachs (GS) closed down 2.6% amid federal investigations into its involvement in Silicon Valley Bank's failed capital raise.
Other major decliners included Home Depot (HD), Caterpillar (CAT), and Nike (NKE), each dropping over 2%.
Intel (INTC) led the Dow's gains for the second day, with CEO Pat Gelsinger's $250,000 stock purchase helping shares rise nearly 2%, making it one of only six stocks to close higher.
Microsoft (MSFT) shares gained after expanding access to its ChatGPT-powered Bing search engine and reports of collaboration with AMD on an AI processor, which boosted AMD's stock by over 6%.
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