The Dow Jones Industrial Average saw a significant increase on Friday due to gains in Home Depot and Caterpillar. The index added 247.15 points, reaching 40,000.90 and hitting a new all-time high of 40,257.24. Home Depot increased by 1.7% for the week, while Caterpillar rose by nearly 1.4% during the day.
The S&P 500 also experienced growth, closing at 5,615.35 with a 0.55% increase. The Nasdaq Composite ended at 18,398.45, up by 0.63%. On Thursday, the S&P 500 had its worst day since late April, with Nvidia dropping by 5.6%. However, the Dow outperformed, rising by 0.08% during the sell-off in other major averages.
Investors turned to the Dow’s industrial names on hopes of a Federal Reserve rate cut in September following a report showing a decline in the consumer price index. The Russell 2000 Index surged by 6% for the week, with smaller companies benefiting from a perceived soft landing for the broader economy.
Despite mixed reactions to bank earnings, the market remained robust. JPMorgan shares fell by 1.2%, while Citi dipped by 1.8%, despite beating expectations in the second quarter. Wells Fargo shares plummeted by 6% after reporting lower-than-expected net interest income.
Wholesale inflation data came in slightly higher than expected, but investors focused on the previous day’s consumer prices report showing a slowdown in inflation. Nvidia bounced back by 1.4% as investors revisited tech stocks that had declined the day before.
The S&P 500 has seen an 18% gain for the year, largely driven by the technology sector’s 33% increase. Communication services are also up by 26%, outperforming other major sectors.