Dow tops 40,000, world stocks hit record amid rate cut hopes

NEW YORK >> The Dow Jones industrial average crossed the 40,000 level today for the first time and a world stock index scored a third straight record intraday high amid U.S. interest rate cut hopes and strong earnings before stocks turned mostly flat in afternoon trading.

Data on Wednesday showed cooling consumer price inflation, although that was offset today by news that U.S. jobless claims fell in the latest week and by figures showing U.S. import prices increased 0.9% last month.

That data boosted U.S. Treasury yields and the dollar.

The S&P 500 and Nasdaq also hit record highs in early New York trading and were little changed by afternoon.

Shares of Walmart jumped 7% after the retail giant raised its fiscal 2025 sales and profit forecast.

The Dow Jones Industrial Average rose 13.70 points, or 0.03%, to 39,921.54, after earlier breaching the 40,000 level. The S&P 500 lost 2.01 points, or 0.04%, to 5,306.24 and the Nasdaq Composite lost 17.50 points, or 0.10%, to 16,725.09.

“What (the Dow 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,” said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.

MSCI’s gauge of stocks across the world rose 1.14 points, or 0.14%, to 794.91, after hitting a third straight record intraday high. The STOXX 600 index fell 0.21%.

Overnight in Asia, Chinese and Hong Kong property shares had also rallied after reports that Beijing was considering a plan for local governments to buy up millions of unsold homes across the country.

The dollar index, which measures the US currency against a basket of currencies including the yen and the euro, gained 0.26% at 104.47, with the euro down 0.14% at $1.0867.

Against the Japanese yen, the dollar strengthened 0.26% at 155.27.

Data today showed the number of Americans filing new claims for unemployment benefits fell 10,000 to a seasonally adjusted 222,000 in the latest week, indicating a still-strong labor market.

Benchmark 10-year yields were last up 2.1 basis points to 4.377%, after earlier falling to 4.313%, the lowest since April 5.

U.S. crude gained 60 cents to settle at $79.23 a barrel and Brent rose 52 cents to settle at $83.27.

Spot gold fell 0.1% to $2,383.22 per ounce as of 1645 GMT, after hitting its highest since April 19 earlier in the session. Bullion rose more than 1% on Wednesday.

Additional reporting by Marc Jones in London,