Module build failed (from ./node_modules/babel-loader/lib/index.js): Error: Cannot find module 'babel-preset-react'

I'm stuck with the following error when trying to build a react app with Webpack4 and Babel7.

ERROR in ./src/index.js Module build failed (from ./node_modules/babel-loader/lib/index.js): Error: Cannot find module 'babel-preset-react' from '/Users/me/Desktop/reflask' - If you want to resolve "react", use "module:react" - Did you mean "@babel/react"? at Function.module.exports [as sync] (/Users/me/Desktop/reflask/node_modules/resolve/lib/sync.js:43:15) at resolveStandardizedName (/Users/me/Desktop/reflask/node_modules/@babel/core/lib/config/files/plugins.js:101:31) at resolvePreset (/Users/me/Desktop/reflask/node_modules/@babel/core/lib/config/files/plugins.js:58:10) at loadPreset (/Users/me/Desktop/reflask/node_modules/@babel/core/lib/config/files/plugins.js:77:20) at createDescriptor (/Users/me/Desktop/reflask/node_modules/@babel/core/lib/config/config-descriptors.js:154:9) at items.map (/Users/me/Desktop/reflask/node_modules/@babel/core/lib/config/config-descriptors.js:109:50) at Array.map () at createDescriptors (/Users/me/Desktop/reflask/node_modules/@babel/core/lib/config/config-descriptors.js:109:29) at createPresetDescriptors (/Users/me/Desktop/reflask/node_modules/@babel/core/lib/config/config-descriptors.js:101:10) at passPerPreset (/Users/me/Desktop/reflask/node_modules/@babel/core/lib/config/config-descriptors.js:58:96) @ multi (webpack)-dev-server/client?http://localhost:8080 ./src main[1]

I've tried removing the node_modules folder and reinstalling dependencies with the following.

Terminal

rm -rf node_modules/
npm install

Configuration

package.json

{
  "name": "reflask",
  "version": "1.0.0",
  "description": "",
  "main": "index.js",
  "scripts": {
    "start": "webpack-dev-server --open --mode development",
    "build": "webpack"
  },
  "keywords": [],
  "author": "",
  "license": "ISC",
  "devDependencies": {
    "@babel/core": "^7.1.0",
    "@babel/preset-env": "^7.1.0",
    "@babel/preset-react": "^7.0.0",
    "babel-loader": "^8.0.2",
    "html-loader": "^0.5.5",
    "html-webpack-plugin": "^3.2.0",
    "prop-types": "^15.6.2",
    "webpack": "^4.19.1",
    "webpack-cli": "^3.1.1",
    "webpack-dev-server": "^3.1.9"
  },
  "dependencies": {
    "bootstrap": "^4.1.3",
    "react": "^16.5.2",
    "react-bootstrap": "^0.32.4",
    "react-dom": "^16.5.2",
    "react-router-dom": "^4.3.1"
  }
}

webpack.config.js

const HtmlWebPackPlugin = require("html-webpack-plugin");
module.exports = {
    module: {
        rules: [
            {
                test: /\.js$/,
                exclude: /node_modules/,
                use: {
                    loader: "babel-loader",
                    options: {
                        presets: ['react']
                    }
                }
            },
            {
                test: /\.html$/,
                use: [
                    {
                        loader: "html-loader"
                    }
                ]
            }
        ]
    },
    plugins: [
        new HtmlWebPackPlugin({
            template: "./src/index.html",
            filename: "./index.html"
        })
    ]
};

index.js

import React from 'react';
import ReactDOM from 'react-dom';
import App from './js/components/App.jsx';
import registerServiceWorker from './registerServiceWorker';

ReactDOM.render(<App />, document.getElementById('root'));
registerServiceWorker();

.babelrc

{
  "presets": ["@babel/preset-env", "@babel/preset-react"]
}