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Stock market today Dow 40,000: Live updates

THE Dow Jones Industrial Average surged above 40,000 for the first time as the bull market advanced on bets that inflationary pressures would ease and interest rates would fall.

The Dow Jones rose 83 points, or 0.2%. At its highest of the day, the average reached 40,051, the culmination of a bull market that began in October 2022. The index had approached the 40,000 mark earlier this year, before a slight pullback in April due to concerns about high interest rates causing it to fall again. . The recovery was revived in May thanks to strong profits and low inflation figures.

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Dow Year to Date

THE S&P500 rose 0.1% on Thursday to a new record high after closing above the 5,300 level for the first time on Wednesday. THE Nasdaq Composite also gained 0.1% to reach an all-time high. The Dow is up more than 6% for 2024, while the Nasdaq and S&P 500 are up 11% each.

“This achievement is a testament to the powers of capital formation, innovation, profit growth and economic resilience,” said John Lynch, chief investment officer at Comerica Wealth Management. “Recent technical momentum and fundamental strengths, including earnings and interest rates, suggest further near-term gains.”

It was Walmart that lifted the charge above 40,000 as the world’s largest retailer jumped 6% on strong first-quarter fiscal results. Walmart is now up 26% for the year.

The Dow Jones’s advance towards 40,000 points comes as expectations of interest rate cuts and enthusiasm around artificial intelligence strengthen investor confidence. The Federal Reserve’s first rate cut is scheduled for September, according to the CME Group’s FedWatch tool. That expectation grew after a smaller-than-expected increase in consumer prices for April was reported earlier this week.

On top of that, tech darlings such as Amazon, Metaplatforms And Nvidia are all up sharply since the start of the year.

Amazon, which just joined the more than century-old Dow Jones in the first quarter, is up more than 22% over the year. Other top performers in the Dow this year include American Express And Goldman Sachs. Both stocks rose more than 20%, with investors betting that the economy would avoid a recession and that consumption would remain strong.

Nvidia, which is not part of the Dow, is leading the overall bull market and rose another 0.7% on Thursday. The AI ​​chipmaker has gained 90% so far this year.

Baird analyst Ross Mayfield believes this rise still has the strength to continue.

“It has all the signs of a cyclical bull market and, as far as we know, it’s not running out of steam,” he told CNBC in an interview.

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News Source : www.cnbc.com

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