The 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 (.SPX), opens new tab edged higher after paring losses while the Nasdaq (.IXIC), opens new tab fell, but both chalked up a fourth straight week of gains. The Dow (.DJI), opens new tab 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 (.SPNY), opens new tab leading gains while technology (.SPLRCT), opens new tab 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 (.DJI), opens new tab rose 134.21 points, or 0.34%, to 40,003.59, the S&P 500 (.SPX), opens new tab gained 6.17 points, or 0.12%, to 5,303.27 and the Nasdaq Composite (.IXIC), opens new tab 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, Wisconsin.
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