On Friday, the Dow Jones Industrial Average closed above 40,000 for the first time, and other major indexes also posted weekly gains as data supported expectations for the Federal Reserve to cut interest rates this year.
The blue-chip index rose 134.21 points, or 0.3%, to 40,003.59, marking its fifth straight week of gains. The S&P 500 rose 0.1%, while the Nasdaq fell less than 0.1%. Both recorded increases for the fourth consecutive week.
Strong corporate earnings and economic indicators such as inflation have raised investors’ expectations that the Federal Reserve will cut interest rates this year. For the week, the Dow rose 1.2%, the S&P 500 rose 1.5% and the Nasdaq rose 2.1%.
“Today is a bit of a wind down day,” said Keith Lerner, Co-Chief Investment Officer of the firm. Stated. Truist Advisory Services in Atlanta;
Traders believe there is a 68% chance the Fed will make its first rate cut in September, according to the CME FedWatch tool.
“Every time we’ve seen the market reach milestones and new highs, it seems like it’s all psychological,” said Tom Plumb, chief executive officer and portfolio manager at Plumb Funds in Madison, Wis. “Even if you see it, there is almost always consolidation happening around it.”
“People have been getting mixed signals this week regarding inflation, but the next big trigger is what Nvidia reports next week. So today is one of those days where I think we’re biding our time. .”
Advanced Micro Devices rose 1.1% after Microsoft announced plans to offer cloud computing customers a platform of AMD artificial intelligence chips that compete with Nvidia components.
Reddit rose 10% after partnering with OpenAI to provide content to ChatGPT.
GameStop fell nearly 20% after it filed for a mixed shelf offering and said it expects first-quarter net sales to decline from a year ago.
