Dow Jones Industrial Average Surpasses 40,000 Mark, Signaling Broad Market Rally

Dow Reaches Record Highs Above 40,000, Small Caps Ride The Rate-Cut Wave, EV Stocks Rally: What's Driving Markets Friday? - Bank of New York Mellon (NYSE:BK)

S&P 500 sees gains in all eleven sectors, marking its tenth positive week out of the last twelve. It's another memorable day for the stock market, as the blue-chip Dow Jones Industrial Average Index reaches new record highs, surpassing the 40,000-mark milestone and breaking the previous peak set in May. Small caps continue their rally driven by strong bets on interest rate cuts, sustaining momentum after Thursday's extraordinary surge. The Russell 2000 Index, as tracked by the iShares Russell 2000 ETF IWM, has had its best week of the year, gaining over 6%. Each of the eleven S&P 500 sectors showed a gain Friday, with the index of the 500 largest U.S. corporations rising 0.9%. For the S&P 500, this marks the tenth positive week out of the last twelve. The Nasdaq 100 also showed a solid rebound, rising by 1% after a 2.2% selloff the previous day. On the macro front, producer inflation rose more than expected in June. However, this did not affect expectations for rate cuts, with traders firmly anticipating a cut in September, assigning it a near-certain probability. The consumer sentiment index measured by the University of Michigan continues to show signs of weakness in July, though it also indicates a decrease in future inflation expectations. Major banks such as JPMorgan Chase & Co. JPM, Citigroup Inc. C, and Wells Fargo & Co. WFC reported better-than-expected earnings, yet market reactions were negative, particularly for Wells Fargo amid a weakening outlook on net interest income. Treasury yields were steady, with the 10-year yield hovering at 4.20%, on track for the lowest close since late March. The dollar weakened further, poised for its second consecutive week of declines. In commodities markets, gold inched up 0.1%, battling for its fourth straight session of gains. Natural gas spiked 3%, while oil prices softened by 0.2%. In the cryptocurrency market, Bitcoin BTC/USD rose by 1.3%, trading above $58,000. Friday's Performance In Major US Indices, ETFs According to Benzinga Pro data: The SPDR S&P 500 ETF Trust SPY was 0.9% higher to $561.58. The SPDR Dow Jones Industrial Average DIA rose by 0.9% to $397.59. The tech-heavy Invesco QQQ Trust (ARCA: QQQ) rebounded 1% to $496.94. Sector-wise, the Consumer Discretionary Select Sector SPDR Fund XLY outperformed, up by 1.7%, while the Communication Services Select Sector SPDR Fund XLC lagged, up 0.1%. Friday's Stock Movers EV-related stocks rallied substantially amid strong expectations for Q2 deliveries. Shares of Lucid Group Inc. LCID, Rivian Automotive Inc. RIVN and Tesla Inc. TSLA rocketed 21%, 11% and 4% respectively. Bank of New York York Mellon Corp. BK rose over 5%, in reaction to its earnings, eyeing the strongest session in two years. QuantumScape Corp. QS rallied 18% after the company announced Thursday it entered into an agreement with Volkswagen's PowerCo to industrialize solid-state batteries Carvana Co. CVNA rose over 8% to $140 after BTIG initiated coverage at Buy with $155 price target. Read now: Yardeni Raises S&P 500 Year-End Target To 5,800, Hints At Faster-Than-Expected Discounting Of 'Roaring 2020s Scenario' Image created using artificial intelligence via Midjourney. Market News and Data brought to you by Benzinga APIs

Dow Reaches Record Intraday High Amid Rebound On Wall Street

(RTTNews) - Stocks have moved sharply higher over the course of the trading day on Friday, largely offsetting the significant pullback seen in the previous session. With the strong move, the Dow has reached a new record intraday high. Currently, the major averages are just off their highs of the session. The Dow is up 399.72 points or 1.0 percent at 40,153.47, the Nasdaq is up 210.95 points or 1.2 percent at 18,494.35 and the S&P 500 is up 56.58 points or 1.0 percent at 5,641.12. The strength on Wall Street comes as traders look to pick up stocks at somewhat reduced levels following the steep drop seen on Thursday, which partly reflected a rotation out of leading tech stocks like Nvidia (NVDA). Shares of Nvidia are currently jumping by 2.6 percent after the AI darling plunged by 5.6 percent in the previous session. Traders also remain optimistic about the outlook for interest rates even though the Labor Department released a report showing producer prices in the U.S. increased by slightly more than expected in the month of June. The Labor Department said its producer price index for final demand rose by 0.2 percent in June following a revised unchanged reading in May. Economists had expected producer prices to inch up by 0.1 percent compared to the 0.2 percent dip originally reported for the previous month. The report also said the annual rate of producer price growth accelerated to 2.6 percent in June from an upwardly revised 2.4 percent in May. The annual rate of producer price growth was expected to creep up to 2.3 percent from the 2.2 percent originally reported for the previous month. Despite the advance by the broader markets, shares of Wells Fargo (WFC) have moved sharply lower after the company reported weaker than expected net interest income for the second quarter. Financial giants JPMorgan Chase (JPM) and Citigroup (C) have also moved to the downside after reporting their second quarter results. Sector News Semiconductor stocks have shown a strong move back to the upside following a sell-off in the previous session, with the Philadelphia Semiconductor Index surging by 2.5 percent after plunging by 3.5 percent on Thursday. Considerable strength also remains visible among housing stocks, as reflected by the 2.1 percent jump by the Philadelphia Housing Sector Index. Networking stocks also continue to see significant strength on the day, driving the NYSE Arca Networking Index up by 2.0 percent. Steel, utilities and computer hardware stocks have also shown notable moves to the upside, moving higher along with most of the other major sectors. Other Markets In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index plummeted by 2.5 percent, while Hong Kong's Hang Seng Index surged by 2.6 percent. Meanwhile, the major European markets all moved to the upside on the day. While the French CAC 40 Index shot up by 1.3 percent, the German DAX Index jumped by 1.1 and the U.K.'s FTSE 100 Index rose by 0.4 percent. In the bond market, treasuries have shown a lack of direction after moving sharply higher in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 4.198 percent. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock market today: Dow closes above 40,000 as rally breaks out beyond mega-cap tech | Business Insider India

Stocks jumped to end the week, with the Dow Jones Industrial Average rallying more than 200 points to close above 40,000 for the first time since mid-May. Investors cheered the broadening of a 2024 stock-market rally that has been largely concentrated with mega-cap tech names associated with the AI trade. Every sector of the S&P 500 rose on Friday, with 90% of the names in the index posting gains. Small-caps also jumped for the second day in a row, as the Russell 2000 saw a 1% return after surging 4% on Thursday. Behind the rally in encouraging data that's paving the way for a rate cut in September. Consumer prices rose less than expected last month, while wholesale inflation was hotter, though only slightly and not enough to derail a coming rate cut, market pros said Friday. According to the CME FedWatch Tool, markets see nearly 90% odds the Federal Reserve dials back interest rates at the September FOMC meeting. Odds of a jumbo rate cut of 50 basis points at the December meeting have also risen, with traders placing the strongest odds on the fed funds rate dropping to 4.50%-4.75% at the final meeting of the year. Here's where US indexes stood at the 4:00 p.m. closing bell on Friday: Bond yields have tumbled as the market adjusts to the favorable data and fresh outlooks for rates. The rate-sensitive two-year Treasury note has dropped by about 14 basis points in a week and the 10-year bond is down over eight basis points in that time. The 10-year fell to 4.182% on Friday. As the rate outlook firms up, investors see greater potential for stocks that were hampered by tighter Fed policy to be able to gain, soothing some fears of heavy market concentration among the likes of Nvidia and other tech stalwarts. Here's what else happened today: