Dow closes at record high as tame inflation report also lifts small caps
Dow Jones Industrial Average closed at a record high as a subdued inflation report stoked hopes for more Federal Reserve rate cuts, which also boosted small-cap stocks and enabled Wall Street's three main indexes to post weekly gains.
The technology-heavy Nasdaq slipped for the day while the S&P 500 edged slightly lower, but both indexes stayed close to recent record highs.
«The market at this point..(is) pretty much pricing in a soft landing, and pricing in that we have defeated inflation, and that the Fed will be able to lower rates without causing a bunch of harm to the economy», said Liz Young Thomas, head of investment strategy at SoFi in New York.
The Commerce Department reported a moderate rise in consumer spending while inflation pressures continued to ease. Separately, the University of Michigan's final September reading on consumer sentiment came in at 70.1, surpassing economists' expectations of 69.3, according to a Reuters poll.
The Dow Jones Industrial Average rose 137.89 points, or 0.33%, to 42,313.00, the S&P 500 lost 7.20 points, or 0.13%, to 5,738.17 and the Nasdaq Composite lost 70.70 points, or 0.39%, to 18,119.59.
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