Dow sprints past 40,000-mark for first time on earnings boost, rate-cut bets
All three major indexes notched record closes in the previous session after a smaller-than-expected rise in consumer inflation fueled optimism that inflation was easing after three months of hotter numbers.
The briefly breached the 40,000-point level for the first time on Thursday, the blue-chip index's fastest 10,000-point climb, powered by strong quarterly results and rising bets of by the .The index surpassed its previous of 39,935.04, hit on Wednesday, and has recovered nearly 40% from its October 2022 lows. At 10:33 a.m. ET, the Dow was up 0.2% at 39,984.95.
The benchmark S&P 500 and tech-heavy rose marginally on Thursday, setting fresh all-time highs a day after tepid bolstered hopes of interest-rate cuts.
All three major indexes notched record closes in the previous session after a smaller-than-expected rise in consumer inflation fueled optimism that inflation was easing after three months of hotter numbers.
The market is back to betting on two from the Federal Reserve this year, with traders seeing a 72.6% chance of the first reduction in September, according to the CME FedWatch Tool.
The Dow was nearly flat after hitting a fresh intraday record high at open.
"At these levels, the market needs to take a breather and needs to rest," said Peter Cardillo, chief at Spartan Capital Securities.
"So it's very possible that maybe not today, but we are approaching a level of consolidation, somewhat of a small pullback and a sideways movement."
Markets will now focus on several Fed officials expected to speak through the day, including Thomas Barkin, Loretta Mester, Raphael Bostic, Patrick Harker and Michael Barr.
New claims for state unemployment benefits fell 10,000 to a seasonally adjusted 222,000 for the week ended May 11, a Labor Department report showed, pointing to underlying strength in the .
Among , advanced nearly 6% after the retail giant raised its fiscal 2025 sales and profit forecast, betting on easing inflation to further boost demand for essentials.
That helped consumer staples lead sectoral advances with a 0.9% gain.
fell 2.5% after the farm equipment maker trimmed its annual profit forecast for the second time.
At 09:54 a.m. ET, the Industrial Average rose 0.76 points to 39,908.76, the S&P 500 gained 5.07 points, or 0.10%, to 5,313.22 and the Nasdaq Composite gained 20.85 points, or 0.13%, to 16,764.01.
Most and technology stocks climbed, with leading gains.
U.S.-listed shares of added 4% after Warren Buffett's revealed a stake worth $6.7 billion in the insurer.
Popular meme stocks GameStop and AMC Entertainment slid 16% and 8.9%, respectively.
They were set to extend Wednesday's losses that followed a two-day rally sparked by the return of "Roaring Kitty" Keith Gill, the central figure in the 2021 meme stock frenzy.
Declining issues outnumbered advancers by a 1.28-to-1 ratio on the NYSE and by a 1.35-to-1 ratio on Nasdaq.
The S&P 500 posted 31 new 52-week highs and no new lows, while the Nasdaq recorded 87 new highs and 24 new lows.
Source: Stocks-Markets-Economic Times
