Dow Jones Index Closes Positive 172 Points, Hits Above 39,000 for the First Time in Five Weeks

HoonSmart.com >> The Dow Jones Index closed positive 172 points, rising for the 6th and longest consecutive day of this year. Investors remain hopeful that the Fed will cut interest rates this year. After labor market data came in lower than expected, the S&P500 and Nasdaq indexes closed negative as pressure from bond yields increased. Overshadowing good operating results The price of WTI crude oil rose 61 cents, with “European stock markets” closing positive.
      
The Dow Jones Industrial Average (DJIA) closed on May 8, 2024 at 39,056.39 points, up 172.13 points or +0.44%, rising for the 6th consecutive day and the longest consecutive day of 2024 and also closing above above 39,000 points for the first time in five weeks as investors remain hopeful that the Federal Reserve (Fed) will cut interest rates this year.
     
The S&P500 index closed at 5,187.67 points, down 0.03 points, -0.00%.
     
The Nasdaq index closed at 16,302.76 points, down 29.80 points, -0.18%.
      
The Dow Jones index was supported by shares of Amgen and JP Morgan Chase, which both rose more than 2%.
      
Labor market data was lower than expected last week. This will help reduce concerns that the Fed will keep interest rates higher for a long time.
      
CME Group’s latest FedWatch Tool shows that 67% of investors are optimistic that the Fed will cut interest rates by at least 0.25% at its September meeting. That’s up from 54% in last week’s survey.
      
But the S&P500 Index and Nasdaq Index have been pressured by rising US government bond yields. and overshadowed the bright earnings report. In addition, there are no new factors that stimulate the market.
      
Investors also weighed Wednesday’s comments from Fed policymakers. This is still consistent with the comments before the last message. That includes the Fed meeting last week.
      
Boston Fed President Susan Collins said the current monetary policy would slow the economy to bring inflation back to the Fed’s 2% target.
      
Traders and investors are still concerned about whether inflation will hit the Fed’s 2% target and when Fed Chairman Jerome Powell might cut interest rates.
      
Investors are still awaiting the Producer Price Index (PPI) report on May 14 and the Consumer Price Index on May 15.
      
Jennadew Goldberg, head of US interest rate strategy at TD Securities in New York, said: The market is still eagerly awaiting next Wednesday’s CPI report. So move within this period to get information. Investors are still very cautious at this point as they don’t want to speculate too much based on one or two data points.
      
Uber shares fell 5.7% and was the biggest decliner among S&P 500 stocks. After reporting a higher loss than the same period last year and also predicting that results in the second quarter of 2024 may not be the same expectation
      
Tesla shares fell 1.7% after Reuters reported that US prosecutors are investigating whether Tesla misled investors and customers. About the capabilities of the autonomous driving system of Tesla electric cars
      
Intel shares fall more than 2% after cutting second-quarter earnings forecast
      
Technology stocks with high market caps, including Nvidia, Amazon and Alphabet, fell 0.2% – 1.1%, weighed down by a rise in bond yields.

      
      
European markets closed positive at record highs. Investors welcomed the strong performance of listed companies including beer company Anheuser-Busch Inbev and Germany’s Siemens Energy, as they watch for when major central banks will change interest rates.
      
The STOXX 600 index closed at 515.77 points, up 1.75 points, +0.34%.
   
The London Stock Exchange Index closed the FTSE 100 at 8,354.05 points, up 40.38 points, +0.49%.
     
The French stock market index CAC-40 closed at 8,131.41 points, up 55.73 points, +0.69%,
     
The DAX index of the German stock market closed at 18,498.38 points, up 68.33 points, +0.37%.
      
Industrial stocks rose and supported Germany’s main index after electrical equipment maker Siemens Energy lifted its 2024 forecast and posted better-than-expected second-quarter results. The stock price rose by 4.7%.
      
Shares in Anheuser-Busch Inbev, the world’s biggest beer maker from Belgium, rose 5.6% after reporting better-than-expected first-quarter results and confirming its outlook for 2024, and the biggest gains were on Belgium’s main index. And the biggest increase was in the Food and Drink Index, which was up 1.6%.
      
Shares in German sportswear maker Puma rose 11% after first-quarter sales beat expectations.
      
to report economic data Industrial output in Germany rose 0.4% in March from a 1.7% increase in February. which fell below expectations German economic institute IW says the economy will shrink in 2024 and continue to lag behind regional rivals.
      
BMW shares fell 2.9% after the car group’s first-quarter earnings before interest and tax (EBIT) fell short of expectations. Thus, pulling the car group down 1.3%.
     
WTI crude oil for June delivery rose 61 cents, or 0.78%, to close at $78.99 a barrel. And the price of North Sea crude oil for delivery in July increased 42 cents, or 0.51%, to close at 83.58 dollars per barrel.