Dow closes lower Thursday after briefly topping 40,000 for first time: Live updates
The Dow Jones Industrial Average closed slightly lower Thursday after briefly jumping above 40,000 for the first time.
At its high of the day, the blue-chip average reached 40,051.05, the culmination of a bull market that began in October 2022. The index had neared the 40,000 mark earlier this year before a slight April pullback on worries about high interest rates knocked it back down. The rally was rekindled in May on the back of strong earnings and some soft inflation readings.
Ultimately, the 30-stock Dow ended the day down 38.62 points, or 0.1%, closing at 39,869.38. The S&P 500 fell 0.21%, closing at 5,297.10. The Nasdaq Composite finished the day lower by 0.26%, ending at 16,698.32.
During the session, the broader market index also climbed to a new record after closing above the 5,300 level for the first time ever on Wednesday, while the tech-heavy Nasdaq hit an all-time high. The Dow has climbed nearly 6% in 2024, while the Nasdaq and S&P 500 are up 11% each.
"This achievement is a testament to the powers of capital formation, innovation, profit growth and economic resilience," said John Lynch, chief investment officer at Comerica Wealth Management. "The recent technical momentum and fundamental strengths, including earnings and interest rates, suggest further near-term gains."
It was Walmart that led the Dow's charge above 40,000 as the world's biggest retailer popped nearly 7% on strong fiscal first-quarter results. Walmart is now up 21% in 2024.
The Dow's march toward 40,000 comes as expectations of interest rate cuts and enthusiasm around artificial intelligence boost investor sentiment. The first Federal Reserve rate cut is priced in for September, according to the CME Group's FedWatch Tool. That expectation grew