- U.S. stocks were mostly higher on Friday, with all three major indexes just below their record highs.
- Strong April consumer price index (CPI) data raised expectations that the US Federal Reserve would cut interest rates by the end of the year.
- Investors will be watching to see whether the gains spill over into next week, which is expected to be a busy week for AI development.
On Friday, the Dow Jones Industrial Average closed above 40,000 for the first time, capping off a strong week boosted by upbeat inflation data midweek.
The index briefly crossed this milestone earlier in the week, then secured the closing price milestone before falling again. Optimism about a rate cut fueled this week’s rise as April’s consumer price index data provided the first positive news of the year on the inflation front.
The S&P 500 rose about 1.5% for the week, helped by solid earnings from consumer goods giant Walmart and April’s CPI report showing slowing inflation. The CPI report raised investors’ expectations that the U.S. Federal Reserve would cut interest rates by the end of the year.
Next week is expected to be a busy week for AI development, as investors look to see if the stock market record continues into next week.
Microsoft plans to host multiple AI events and showcase its latest hardware and software products, and Nvidia is scheduled to report first-quarter results after the market closes on Wednesday.
Fundstrat’s Tom Lee said investors should continue to buy the stock even though its recent share price hit an all-time high, as he expects further developments in AI to push up the stock price.
“Overall, we expect these events and gains to strengthen the visibility and capabilities of AI and related spending, resulting in overall positive growth for technology stocks and the broader market,” Lee said in a note Friday. It will be a positive thing,” he said.
Here are the U.S. indexes as of Friday’s close at 4 p.m.
Here’s what else happened today:
In Commodities, Fixed Income and Cryptocurrencies:
- West Texas Intermediate crude oil rose 1.04% to $79.56 a barrel. The international benchmark Brent crude oil rose 0.84% ​​to $83.97 per barrel.
- Gold rose 1.48% to $2,420.70 per ounce.
- The 10-year Treasury yield rose 4 basis points to 4.42%.
- Bitcoin rose 2.60% to $66,945.
