Investors’ expectations for Fed intervention are reflected in speculation about the possibility of a rate cut, with expectations for a rate cut of two quarter points this year.
US stock market today: Dow Jones reaches $40,000 mark. Major indexes end with slight declines – details (Image source: Times Now Digital)
US stock market today: U.S. stocks had a mixed performance during Thursday’s trading session, but optimism was evident early on. dow jones The industrial average toyed with the historic 40,000 mark. However, the rise was short-lived, news agencies reported, as investor sentiment wavered as a combination of inflation data and strong corporate profits continued to readjust expectations for interest rate cuts.
The Dow’s milestone moment and subsequent decline
Investor enthusiasm gradually waned throughout the day as the Dow reached an unprecedented intraday high of 40,000. Despite the temporary rise in the Dow Jones Industrial Average, all three major indexes closed with slight declines, with the Dow Jones Industrial Average dropping 38.62 points (0.10%) to 39,869.38. S&P500 5,297.10, a decrease of 11.05 points (0.21%). Nasdaq The Composite Stock Price Index fell 44.07 points (0.26%) to 16,698.32.
Factors causing market fluctuations
The Dow Jones Industrial Average’s recovery from its October 2022 lows demonstrated the resilience of the U.S. economy, contrary to expectations in the face of significant interest rate hikes by the Federal Reserve. However, optimism around economic growth and corporate performance was tempered by concerns about valuations, as Great Hill Capital Chairman Thomas Hayes cited higher future earnings multiples.
Interest rate cut expectations and market reaction
Investors’ expectations for Fed intervention are reflected in speculation about the possibility of a rate cut, with expectations for a rate cut of two quarter points this year. Market consensus from the CME FedWatch tool suggests a 70% chance the first rate cut will occur in September, indicating general sentiment regarding monetary policy adjustment. .
Economic indicators and their impact
Market movements were also influenced by key economic indicators, including a modest rise in consumer prices and a decline in unemployment claims in April. Despite the positive indicators, concerns remained about the Federal Reserve’s response to changing economic conditions, especially given changes in rate cut expectations.
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Individual stocks performed differently within broader market trends. Retail giant Walmart rose sharply on its optimistic financial outlook, while farm equipment maker Deere & Co. fell after cutting its profit outlook.
The trading session saw increased volatility, with meme stocks such as GameStop and AMC Entertainment experiencing significant declines after brief gains. Overall volume was above recent averages, reflecting fluctuating investor sentiment amid changing market conditions.
Notable indicators included the mix of decliners and advancers on the New York Stock Exchange and Nasdaq, as well as a notable number of new highs and lows recorded by the S&P 500 and Nasdaq.
