Dow Moves Downward After Topping 40K for First Time - InvestingChannel

Dow Moves Downward After Topping 40K for First Time

The Dow Jones Industrial Average jumped above 40,000 for the first time as the bull market marched higher on bets that inflationary pressures would ease and interest rates would come down.

The 30-stock index slid 38.62 points to 39,869.38. The index had neared the 40,000-point mark earlier this year, before a slight April pullback on worries about high interest rates knocked it back down. The rally was rekindled in May on the back of strong earnings and some soft inflation readings.

The S&P 500 lost 11.05 points to 5,297.10

The NASDAQ Composite shed 44.07 points to 16,698.32.

Earlier in the day, the broader market index climbed to a new record after closing above the 5,300 level for the first time ever on Wednesday,

It was Walmart that led the charge above 40,000 as the world’s biggest retailer popped 6% on strong fiscal first-quarter results. Walmart is now up 26% on the year.

On top of that, tech-related darlings such as Amazon, Meta Platforms and Nvidia are all up sharply year to date.

Amazon, which just joined the more than century-old Dow in the first quarter, is more than 22% higher for the year. Other top Dow performers this year include American Express and Goldman Sachs. Both stocks were up more than 20% as investors bet the economy would skirt a recession and the consumer would remain strong.

That performance was helped by the April reading of the consumer price index, a broad measure of how much goods and services cost at the cash register, which increased 0.3% from the prior month. That was slightly below the Dow Jones estimate of 0.4%. Consumer prices still grew 3.4% from a year ago.

Prices for the 10-year Treasury inched back, raising yields to 4.38% from Wednesday’s 4.35%. Treasury prices and yields move in opposite directions.

Oil prices gained 66 cents to $79.29 U.S. a barrel.

Gold prices erased $11.10 to $2,383.80.

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