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Dow crosses the 40,000 level, world stocks hit record high

Dow Jones

The Dow rose as high as 40,051.05 while the S&P 500 and Nasdaq also hit record highs in early New York trading

The Dow Jones industrial average crossed the 40,000 mark on Thursday for the first time and a world stock index scored a third consecutive record intraday high on hopes of U.S. interest rate cuts and strong earnings before stocks turned mostly flat in afternoon trading.

Data on Wednesday showed cooling consumer price inflation, although that was offset on Thursday by news that U.S. jobless claims declined last week and by figures showing U.S. import prices rose 0.9% last month.

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

The Dow rose as high as 40,051.05 while the S&P 500 and Nasdaq also hit record highs in early New York trading before finishing slightly lower on the session.

Shares of Walmart climbed 7% for its biggest one-day percentage gain since March 2020 after the retail giant raised its fiscal 2025 sales and profit forecast.

The Dow dropped 38.62 points, or 0.10%, to 39,869.38, the S&P 500 shed 11.03 points, or 0.21%, to 5,297.12 and the Nasdaq Composite declined 44.07 points, or 0.26%, to 16,698.32.

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, according to Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.

MSCI’s gauge of stocks across the world added 0.31 points, or 0.04%, to 794.08, hitting a third successive record intraday high. The STOXX 600 index shed 0.21%.

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

The dollar index, which measures the greenback against a number of currencies including the yen and the euro, advanced 0.29% to 104.50, with the euro 0.16% lower at $1.0865. Against the Japanese yen, the dollar firmed 0.34% at 155.39.

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