US stocks: Dow Jones tops 40,000 for the first time

Dow Jones closed at 39,908 on May 15. It rose 4.34 points, or 0.01 percent, at 39,912.34 when markets opened today.

The Dow index reached a milestone on May 16, surpassing 40,000 points for the first time, driven by robust Walmart earnings and a favorable inflation report that led to record highs in the previous session.

Around 1505 GMT, the Dow Jones Industrial Average was at 40,036.40, marking a 0.3 percent increase. Similarly, the broad-based S&P 500 also saw a 0.3 percent rise, reaching 5,324.69, while the Nasdaq Composite Index stood at 16,796.00.

The market saw a boost from essential retailers such as Walmart, which surpassed earnings forecasts and surged by almost 6%. Airline, utility, and major tech stocks also experienced gains.

The dollar index, which compares the greenback against various currencies like the yen and euro, increased by 0.23% to reach 104.44, while the euro decreased by 0.11% to $1.087.

Against the Japanese yen, the dollar strengthened by 0.22% to 155.21.

Benchmark 10-year yields saw a 1 basis point increase to 4.369%, after previously dropping to 4.313%, the lowest since April 5. They are now trading above the 200-day moving average of 4.331%, after briefly falling below it.

U.S. crude rose by 0.7% to $79.18 a barrel, while Brent increased to $83.17 per barrel, up by 0.51% on the day.

Spot gold declined by 0.52% to $2,373.74 an ounce.

Markets had rallied to new record highs following a rally in all three indices on Wednesday, prompted by an inflation report that reignited hopes for Federal Reserve interest rate cuts.

Dow closed at 39,908 on May 15. It rose 4.34 points, or 0.01 percent, at 39,912.34 when markets opened today.

Dow, S&P 500 and Nasdaq hit all-time highs on May 15, closing the day with gains of 1.1 percent and 1.4 percent, respectively, to reach 5,308 and 16,742.

Stocks have risen over the last couple days as inflation appears to cool. The Consumer Price Index, a key inflation gauge, rose 3.4 percent in April compared to a year earlier, according to Bureau of Labor Statistics data. Prices rose by 0.3 percent in April compared to a 0.4 increase in March. Core prices, which exclude food and energy, rose 3.6 percent annually, the lowest increase since April 2021. And, the number of Americans filing new claims for unemployment benefits dropped by 10,000 to a seasonally adjusted 222,000 in the latest week, signaling a resilient labor market.