Dow ends above 40,000 milestone, indexes notch up weekly gains
Dow Jones industrial average closed above the 40,000 mark for the first time on Friday, with other major indexes also scoring weekly gains, as data supported expectations for interest rate cuts by the Federal Reserve this year.
The benchmark S&P 500 edged higher after paring losses while the Nasdaq fell, but both chalked up a fourth straight week of gains. The Dow rose to end the fifth week of advances in a row.
Strong corporate results and inflation and other economic data have bolstered investor hopes for Fed rate cuts this year.
Eight out of the 11 S&P 500 sectors advanced, with energy leading gains while technology was the biggest loser. For the week, Dow gained 1.24%, S&P 500 rose 1.54%, and Nasdaq climbed 2.11%.
«Today is a bit of a digestion day: we just broke out through record highs and now we're on a fourth straight week of gains, and the market appears to take a breaker,» said Keith Lerner, co-chief investment officer at Truist Advisory Services in Atlanta.
Traders see a 68% chance of the Fed's first rate cut in September, the CME FedWatch Tool showed.
The Dow Jones Industrial Average rose 134.21 points, or 0.34%, to 40,003.59, the S&P 500 gained 6.17 points, or 0.12%, to 5,303.27 and the Nasdaq Composite lost 12.35 points, or 0.07%, to 16,685.97.
«For all the times that I've seen the market hit milestones and new highs, there's almost always consolidation around it even though it seems it's all psychological,» said Tom Plumb, chief executive and portfolio manager at Plumb Funds in Madison,
