USA: Dow Jones reaches record high for this year – Economy

For the first time, the US stock market index Dow Jones – in which 30 large US companies are represented – jumps above the 40,000 point mark. The S&P 500 and the Nasdaq technology exchange index were each slightly up at 5,313 and 16,762 points.

Hopes for a turnaround in interest rates after the publication of the US inflation report in April 2024 and a lower inflation rate in the USA had spurred the three indices to new record numbers. After a cautious start, the US leading index managed to gain up to 0.2 percent and was briefly able to catch up with the next thousand mark, around which it then hovered.

The record rally on the US stock exchanges continued. Moderate gains in the Nasdaq 100 Index were also enough for records on the technology-heavy Nasdaq stock exchange. According to the stock market letter author Hans Bernecker, this was an important benchmark for investors on Thursday, just like the 19,000 point mark in the Dax, which the leading German index was initially unable to get any closer to. The trigger for the record trend is not only the prospect of further interest rate cuts in the USA, but also developments in artificial intelligence, which is driving up corporate profits. According to Bernecker, exceeding the 40,000 mark is necessary so that “new momentum” can arise.

“Breaking through the 40,000 mark is a big psychological boost for stock market investors, as round numbers have a special meaning in people’s hearts and minds,” said Chris Zaccarelli, chief investor at Independent Advisor. It is quite possible that the rally will continue: “There are a lot of optimists in the market right now. Investors are a bit exuberant, as we saw with the meme stocks, ignoring bad news like that about declining retail sales and concentrating rely on good news such as the slight decline in US inflation.”

Supermarket giant Walmart is the Dow leader, up over six percent, after reporting better-than-expected first-quarter profit. The other leaders today include the aircraft manufacturer Boeing (plus three percent) and the conglomerate 3M (plus three percent), writes the Guardian.

The post-pandemic period had already boosted the US leading index until 2021 and raised the mark to 35,000 points. But the good times didn’t last as long as they did CNBC writes. A bear market sent the Dow down to 28,660.51 points before the next recovery came. Since that low, the Dow has gained 40 percent.

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