American actions progressed Thursday after a record rally while signs of slowing down inflation continued to stimulate betting on a drop in the rates of the federal reserve in September.
The Dow Jones Industrial Average (^DJI) earned 0.2 % to 40,000 for the very first time. The S&P 500 (^GSPC) increased by 0.1 % after closing for the first time above 5,300. The Nasdaq Composite (^xicic), with a strong technological component, won 0.1 %.
The stock market gains have accelerated as we believe more and more that the American economy is heading for a gentle landing. The three main indicators finished on Wednesday at historical heights, leaving the Dow Jones less than 100 points from the 40,000 mark.
After three consecutive hot figures, the low figure in April consumption inflation provides relief thanks to a market preparing for higher and longer interest rates. Traders bets on a drop in Fed rates in September reached more than 70 %, according to the CME Fedwatch tool, in a context of increasing speculation on a relaxation in July.
Learn more: How does the labor market affect inflation?
Investors also turned to bonds, sending the 10-year Treasury yield (^TNX) near a one-month low of around 4.33%.
On the business side, Walmart (WMT) has recorded a quarterly profit, turnover and sales with comparable stores above the estimates of Wall Street. Shares of the US retail giant jumped around 6% as it raised its full-year guidance.
Meanwhile, a mystery has been resolved when Berkshire Hathaway (BKR-B), from Warren Buffett, revealed that it had participated of $ 6.7 billion in Chubb (CB). This disclosure ended months of suspense on a position that has remained hidden in regulatory files. The insurer’s shares climbed approximately 8%.
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The Dow Jones hits the 40,000 level for the first time
The Dow Jones Industrial Average (^DJI) touched the 40,000 level on Thursday for the first time after a record rally in the previous session.
The first-rate index earned more than 80 points, while the S&P 500 (^GSPC) also increased after closing over 5,300 for the first time on Wednesday. The tech-heavy Nasdaq Composite (IXIC) rose slightly.
These gains come amid growing expectations that the Federal Reserve will cut rates in September following the latest release of the Consumer Price Index which showed signs of slowing inflation.
Bitcoin oscillates $ 66,000
Bitcoin (BTC-USD) extended its gains on Thursday to hover around $66,000.
The token gained more than 7% on Wednesday following cooler-than-expected inflation.
Investors expect the Federal Reserve to make rate cuts this year.
Just live with Walmart’s financial director
I just left Yahoo Finance after a discussion after the results with the financial director of Walmart (WMT), John David Rainey.
Some points to remember:
He told us he sees deflation in some product categories, but not disinflation.
Sales for the month of May are off to a good start.
Investors see the advantages of investments in delivery the same day and in online shopping technology and withdrawal in store.
Jared Blikre, head of data at Yahoo Finance, just reported to me that Walmart has surpassed the $500 billion market cap level.
The actions come together near record levels while the DOW aims at the level of 40,000
American actions changed little when the market opened Thursday after a record rally during the previous session.
The S&P 500 (^GSPC) opened near the flat line after closing over 5,300 for the first time on Wednesday. The Dow Jones Industrial Average (^DJI) and the Nasdaq Composite (Ixic), with a strong technological component, have also changed little.
The three main indicators finished on Wednesday at historical heights, leaving the Dow Jones less than 100 points from the 40,000 mark.
Data on the slowdown in inflation published on Wednesday stimulated bets on a drop in rates of the federal reserve in September.
Meanwhile, Walmart (WMT) reported better-than-expected earnings. The retail giant attracted more higher-income customers and online sales surged for its flagship Walmart and Sams Club stores.
An incredibly strong quarter for Walmart
This quarter at Walmart (WMT) is a monster!
I covered the business on the sales side for a decade, but I have never seen such a performance before – following a time when consumers and companies still feel the bite of inflation.
Some highlights ahead of my interview with Walmart CFO John David Rainey around 9:15 a.m. ET on Yahoo Finance Live:
Raw beneficiary margins increasing in all segments. Impressive
E-commerce sales by division: Walmart US +22%; International +19%; Sam’s Club +18%
Full-year guidance has been raised, but looks conservative after this quarter.
The endless talk about AI
Today I was driving to work and had an interview with the CEO of a foreign company that had just released its results. They received two consecutive questions about AI.
It looked like they barely knew what AI was and hadn’t visited the R&D department in a while. But therein lies the problem with this AI culture: most public company leaders don’t really understand it at all. And that’s a risk for investors.
Despite the lack of in -depth knowledge on the subject, this does not prevent the CEOs from blowing the wind on AI during results calls! Goldman Sachs underlined today in a new note that 41 % of the companies in the S&P 500 mentioned AI in calls for results in the first quarter, compared to 23 % a year ago.
Just look at the rise in AI discussions below.
Earnings calls have become AI calls. (Goldman Sachs)
Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe.
Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
