Dow Jones reaches new record high above 40K points amid expectations of rate cut
Date
7/14/2024 5:19:11 AM
(MENAFN) At the close of Friday's trading session, the Dow Jones Industrial Average surged more than 200 points to reach a new record high above 40,000 points, driven by investor optimism over potential interest rate cuts by the Federal Reserve in September. This bullish sentiment offset mixed earnings reports from major banks, which retreated during the day.
The Dow's climb was supported by notable gains in Stocks like Home Depot and Caterpillar, signaling a shift in investor focus towards sectors beyond the tech-heavy stocks that have dominated recent market trends. Home Depot saw a 1.7 percent increase, contributing to a weekly gain of 7.5 percent, while Caterpillar rose nearly 1.4 percent.
Closing at 40,000.90 points, the Dow Jones Industrial Average reached a peak of 40,257.24 points during the session, marking the first time it surpassed the 40,000 milestone since late May. For the week, the index posted a solid gain of about 1.6 percent.
Meanwhile, the broader market also saw positive movements: S&P 500 rose by 0.55 percent to 5,615.35 points, and the Nasdaq Composite gained 0.63 percent to close at 18,398.45 points. Both indices registered weekly gains of approximately 0.9 percent and 0.25 percent, respectively.
Earlier in the week, the S&P 500 experienced a significant downturn, its worst since late April, as investors sold off leading technology stocks, notably impacting companies like Nvidia, which saw a 5.6 percent decline. Despite this, the Dow Jones Industrial Average demonstrated resilience, outperforming other major indexes with a modest 0.08 percent increase during the sell-off.
Overall, the market's optimism surrounding potential Federal Reserve actions and sector diversification contributed to the Dow's record-setting performance, highlighting robust investor confidence amidst ongoing economic uncertainties and corporate earnings reports.
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