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Dow hits 40,000 points for first time on earnings boost, rate cut bets

U.S. 10-year yields were flat at 4.356% FOREX: The dollar index was last up 0.3% at 104.49

Wall Street, US stocks, S&P, Dow Jones

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Reuters

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The Dow Jones Industrial Average surpassed 40,000 points for the first time on Thursday, the blue-chip index's fastest 10,000 point-climb, powered by strong quarterly results and rising bets of interest rate cuts by the Federal Reserve.

MARKET REACTION:
 
STOCKS: The Dow was last up 0.3% at 40,029. The S&P and Nasdaq were up as well.
 
BONDS: U.S. 10-year yields were flat at 4.356% FOREX: The dollar index was last up 0.3% at 104.49.

COMMENTS:
 
OLIVER PURSCHE, SENIOR VICE PRESIDENT, WEALTHSPIRE ADVISORS, NEW YORK
"It's a nice milestone but like any other milestone it will fade as time passes."
 
"The rally today is a continuation of yesterday's rally, and while that CPI report was good and should boost confidence it's not going to alter the Fed's timeline and investors should be aware of that."
 
"The names that are driving the Dow are at least in part similar to the names that are driving the S&P and the Nasdaq." "There still is - and there will likely continue to be - a favoritism for large and mega cap stocks."
 
QUINCY KROSBY, CHIEF GLOBAL STRATEGIST, LPL FINANCIAL, CHARLOTTE, NORTH CAROLINA
 
"It is important, even though the Dow is not considered to be the leading index. Obviously, the S&P 500 and Nasdaq are considered to be more indicative of the market and of corporate earnings and investor interest."
 
"But the Dow is seen as 'Main Street America,' and media across this country and global media reference the Dow. It is enduring and includes companies that are part of the future.

What (hitting 40,000) means is that regardless of the concerns about inflation and consumer sentiment, the companies in the Dow, which represent a cross section of our economy, continue to March higher on better earnings and stronger guidance." "The Dow is America's index and it is beyond the realm of professional money managers. It has been slighted by the professionals, but the Dow is enduring and it represents Main Street America."
 
JUAN PEREZ, DIRECTOR OF TRADING, MONEX USA, WASHINGTON "Clearly the economy is in a bit of a disconnect with a lot of dissatisfaction across sectors, yet companies having great earnings seasons and the Fed's tightening cycle not denting the economy as reflected in this historic achievement for equities."

"While the dollar has gained off of its attractive interest rates, it has brought in a lot more attention from global investors who lost faith in China as a source of global prosperity. America's steadiness post-pandemic has been rewarded as well as the long-term investor who felt the earth shake as the shutdowns in productivity put speculation in the back-burner."
 
"We have survived the worst of a strange period, but the thriving has been uneven and while new technologies may continue bringing in value to companies, real growth will come when education, technology, and government catch up and get on the same page. Once that happens, there could be immense room for growth since the push for economic technological advancement will also have critical national security components to it. Good for those who held on throughout the turbulence." 

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First Published: May 16 2024 | 9:08 PM IST

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