US Stocks extend gain on rate cut hopes

US stocks were mostly higher on Tuesday, 07 May 2024, with the Dow extending winning streak for the fifth consecutive session, as stocks continued to benefit from growing hopes that the Federal Reserve will ease monetary policy later this year.

Stocks continued to benefit from weaker-than-expected labor market report last week that fueled bets that the U.S. central bank will cut rates. However, buying interest waned in afternoon trading after Minneapolis Federal Reserve President Neel Kashkari suggested interest rates may need to remain at current levels for an "extended period."

At closing bell, the Dow Jones Industrial Average index climbed up 31.99 points, or 0.08%, to 38,884.26. The S&P500 index advanced 6.96 points, or 0.13%, to 5,187.70. The tech-heavy Nasdaq Composite index decreased by 16.69 points, or 0.1%, to 16,332.56.

Total 07 of 11 S&P500 sectors closed higher along with S&P500 index. Material sector was top performer, rising 1.17%, while consumer discretionary sector was bottom performer, falling 0.56%.

Among individual stocks, Walt Disney fell 9.7%, as a surprise profit in its streaming entertainment division was eclipsed by a drop in its traditional TV business and weaker box office.

Nvidia shares fell after the Wall Street Journal reported that Apple was developing its own chip to run artificial intelligence (AI) software in data centers.

Tesla shares declined after data showed the US automaker sold 62,167 China-made electric vehicles in April, down 18% from a year ago.

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