Newscasts - Dow ends above 40,000 mark for the first time

CBIZ

17/05/2024 22:45

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Source: 'Reuters - Business videos'

Description: The S&P 500 and Nasdaq took a breather on Friday after a
weeks-long rally underpinned by hopes for interest rate cuts, but the Dow
closed above 40,000 mark for the first time to end the fifth week of advances
in a row. Chris Dignam produced this report.
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Video Transcript:

The Dow Jones Industrial average closed above the 40,000 mark for the first
time ever on Friday, while the other two major indexes took a break, after
data this week supported expectations for interest rate cuts by the Federal
Reserve. The Dow added roughly a 0.30%. The S&P 500 edged up about 0.10%,
while the NASDAQ fell, but only fractionally. All three indexes touched record
highs in the previous session following inflation data that boosted investor
hopes for Fed rate cuts this year. But the exuberance wore off Friday says
Anna Rathbun, Chief Investment Officer of CBIZ Investment Advisory Services.

Well, I think the market is taking a breather today. After the CPI and retail
sales report, the bet that the Fed may be cutting rates sooner rather than
later really drove the markets up both on the bond and the stock market side.
They can't all keep going up forever. So, today, I think they're taking a
break.

The stocks that moved included Reedit, which ended 10% higher after news it
was partnering with OpenAI to bring its content to ChatGPT. Shares of Advanced
Micro Devices rose more than a percent after Microsoft said it plans to offer
its cloud computing customers a platform of AMD artificial intelligence chips
that will compete with those made by Nvidia. Shares of that chip maker, which
reports quarterly results next week fell 2%. After spiking in a meme-stocks
frenzy earlier in the week, shares of GameStop sank nearly 20%. The video game
retailer said on Friday that it would sell up to 45 million shares to raise
capital and also said it expects first quarter net sales to drop from a year
ago