Topline
The Dow Jones Industrial Average set another record on Tuesday, surging to an all-time intraday high for the third-straight session as markets respond positively to prospect of the Federal Reserve cutting interest rates.
Key Facts
The Dow increased by 637 points (1.5%) to 40,849.12 at around 11:30 a.m. on Tuesday before dropping, briefly eclipsing an intraday record of 40,351.10 set on Monday, which broke a record of 40,257.24 set on Friday.
The index’s record-breaking day on Monday concluded with a record-setting close of 40,211.72, surpassing a previous record of 40,003 set on May 17.
The Dow—which tracks 30 of the most valuable public companies in the U.S.—is now up over 8% on the year and nearly 18% over the last year.
UnitedHealth Group (5%), Boeing (3.8%) and Caterpillar (3.6%) led the Dow’s rally as shares for tech-heavy firms like Intel, Microsoft and Apple fell slightly.
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Surprising Fact
The Dow passed 40,000 for the first time earlier this year, following a surge for Walmart’s shares that peaked at an all-time high. It took just over three years for the index to reach that milestone after eclipsing 30,000 in November 2020.
Tangent
The S&P 500 has set several all-time intraday highs in recent weeks, including a record 5,666.94 set on Monday, and rose again slightly (0.3%) on Tuesday. The index is on pace to break its record close of 5,633.91 set last week.
Key Background
The Dow’s record-setting streak follows inflation falling to its lowest point in a year last week, which market analysts believe could lead to interest rates being cut as soon as September. The Fed began hiking rates in 2022, part of a gambit to quell inflation at the cost of raising borrowing costs and potentially slowing economic growth. Markets have responded positively to consumer prices falling month-to-month for the first time in four years and wholesale prices increasing slightly higher than analyst projections. Optimism surrounding artificial intelligence has caused the Dow, which relies on share prices rather than market capitalization, the S&P 500 and Nasdaq to swell in recent months.
Further Reading
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Source Link: https://www.forbes.com/sites/tylerroush/2024/07/16/dow-sets-all-time-high-for-third-straight-day/
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Topline The Dow Jones Industrial Average set another record on Tuesday, surging to an all-time intraday high for the third-straight session as markets respond positively to prospect of the Federal Reserve cutting interest rates. A broader market rally follows a year-low for inflation and increased chances of interest rates … [+] being cut. Getty Images …