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Dow Jones Today: Index Dips on Chip Fight Fears

Comments by Fed Chair Jerome Powell and potential restrictions on the sale of AI chips to China helped send Dow down about 0.2%

By
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 June 28, 2023

Leonardo Munoz / VIEWpress / Getty Images

Key Takeaways

  • Insurer Travelers Companies fell 2.5% to become the day's worst-performing Dow stock.
  • Salesforce shares rose after Goldman Sachs said the company was poised to boost its profits.
  • Intel shares fell after Oracle said its software would be compatible with Ampere Computing chips in a blow to Intel's position with data center customers.

Concerns over trade restrictions with China and comments by Federal Reserve Chair Jerome Powell helped send the Dow Jones Industrial Average (DJIA) lower by 0.2%, or 64 points, Wednesday.  

Powell, speaking at a central banker's conference in Portugal, reiterated his view that more rate hikes are needed to bring U.S. inflation under control.

News of possible restrictions on chipmakers selling AI chips to China sunk AI darlings like Nvidia (NVDA), which fell 1.7%. Nonetheless, the Nasdaq rose 0.2%, buoyed by other tech stocks. The S&P 500 lost 0.1%.

Insurance giant Travelers Companies (TRV) was the Dow's worst-performing stock, falling 2.5%.

Intel (INTC) shares fell 1.7% after Oracle Corp. (ORCL) said its industry-leading database software can be used with Ampere Computing chips, dealing another blow to Intel's data center business.

Salesforce (CRM) was the best-performing of the 30 Dow stocks, with shares rising 1.6% after Goldman Sachs analysts called out the cloud-based software company's profit potential.

Walgreens Boots Alliance (WBA) shares rose 1.3%, rebounding from yesterday’s selloff that sent the stock plunging 9%.

Chevron (CVX) shares moved higher by 0.9% as oil futures surged by 2.5% on a report that U.S. crude oil inventories fell by 10 million barrels last week. 

Shares of Boeing (BA) rose 0.7% after the aircraft maker said that about 90% of China’s 737 MAX jets have resumed commercial operations. China grounded the jet after a pair of crashes in 2019.

Apple (AAPL) climbed 0.6%, setting an intraday record when it hit $189.89, before retreating to close at $189.25. The stock is on the cusp of reaching a $3 trillion valuation. 

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Article Sources
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  1. CNBC. “Salesforce and more: Goldman Sachs names 5 tech stocks set for a profit boost, giving one 50% upside.”

  2. Bloomberg. “Boots to Close 300 Stores in UK as Owner Walgreens Slashes Profit Forecast.”

  3. Reuters. “Boeing says about 90% of China 737 MAX jets have resumed commercial operations.”

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