The Dow Jones Industrial Average reached a milestone of 40,000 for the first time ever on Thursday morning following a positive inflation report. This index, which consists of 30 major companies such as Apple and McDonald’s, has seen a 6% increase so far this year. The S&P 500 and the Nasdaq also reached record highs, surpassing the Dow’s performance.
The climb in the stock market was prompted by a report from the Bureau of Labor Statistics indicating that the Consumer Price Index rose by 3.4% in April, which was lower than what analysts had anticipated. Despite this increase, the Federal Reserve is still aiming for an inflation rate of 2%. If inflation continues to slow down, the Fed may consider lowering key interest rates from the current rate of nearly 5.5%.
In Thursday morning trading, the S&P 500 rose by 0.2%, the Dow Jones Industrial Average was up 109 points at 40,017 (0.3%), and the Nasdaq increased by 0.2%. The previous day, all three indices rallied and reached all-time highs.
Stock prices for Walmart surged by 6.4% after reporting stronger profits for the latest quarter than expected and raising its revenue forecasts for the year. Other retailers like Target, Dollar General, and Dollar Tree also experienced stock price increases of at least 2%.
These positive trends in the stock market could potentially provide relief to Americans facing financial challenges due to inflation impacting their purchasing power. While more workers applied for unemployment benefits last week than predicted by economists, the overall number remains low compared to historical data. Additionally, reports showed that homebuilders initiated fewer projects last month than anticipated, manufacturing growth in the mid-Atlantic region was weaker than expected, and import prices rose more than forecasted.
“Today’s numbers reflect the overall theme of the week – indicating a steady or cooling economy,” said Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, in a statement to the Associated Press.