The Dow Jones Industrial Average closed at a record high Friday, its fourth record-breaking performance this week as other indexes surged ahead of market close following a favorable inflation report from the Commerce Department.
The Dow, S&P 500 and Nasdaq all closed up Friday. (Photo by ANGELA WEISS / AFP) (Photo by ANGELA ... [+]
The Dow closed up nearly 0.6% at a record high of 41,563.08 points, recovering from an afternoon slump that brought it near the 41,156 mark.
The index’s performance marks its fourth record breaking close of the week after wrapping up Thursday at 41,335.05 points.
The S&P 500 and Nasdaq jumped more than 1% on the day, recovering from a largely flat performance Thursday.
The indexes’ successful day comes after the Commerce Department reported a 0.2% jump in prices to 2.5%, the same inflation rate from the same period last year and just a 0.1% increase from the previous month.
The report contributes to potential interest rate cuts from the Fed next month, which would be its first cut in more than four years, according to the Associated Press.
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7.1%. That is what the inflation rate peaked at a little more than two years ago.
Fed Chair Jerome Powell said last week “the time has come” to cut down on interest rates, with economists forecasting a minimum quarter-point cut of the 5.3% rate next month, the Associated Press reported.
The Dow is now up more than 10% on the year while the S&P 500 and the Nasdaq are trading up 18% within the same period. This week, the indexes navigated a slide in shares of Nvidia, which has occasionally swayed the larger market this year as the best stock on the S&P 500. The indexes were largely unaffected during the Nvidia slump Thursday, as the AI company’s stock dropped 6.3% to $117.59 per share.
Dow Hits New Record High As Stocks Rally Despite Nvidia’s Slump (Forbes)
Federal Reserve’s favored inflation gauge shows price pressures easing as rate cuts near (Forbes)