Dow Hits Record High – The stock market experienced a mixed performance on Thursday, with the Dow Jones Industrial Average (DJIA) reaching a new all-time high while the Nasdaq Composite and S&P 500 closed lower.
Dow Surges, Nasdaq Slides
The DJIA gained over 200 points, setting a new closing record of 41,335.05. The tech-heavy Nasdaq, however, erased earlier gains to end the day down by about 0.2%. The S&P 500 closed flat, following losses for all three major averages on Wednesday.
Nvidia Earnings Disappoint
Wall Street’s lackluster response to Nvidia’s (NVDA) earnings report contributed to the market’s volatility. Nvidia, a leading AI chipmaker, has been a key driver behind the market’s rally this year. While the company’s quarterly profit and revenue surpassed estimates, the size of the beats fell short of high expectations.
This raised concerns about whether the AI boom has peaked. Despite Wall Street analysts remaining bullish on Nvidia’s stock, shares ended the day down around 6%.
Dow Hits Record High – Mixed Earnings Reports
In other earnings news, Salesforce (CRM) shares jumped after the software maker reported a significant earnings beat. Best Buy (BBY) shares also surged, soaring by as much as 17% after the retailer released better-than-expected results.
On the other hand, Dollar General (DG) shares plummeted by more than 30%. The discount retailer lowered its full-year outlook, citing softer sales attributed to “cash-strapped” customers.
Economic Data
The release of key economic data also influenced the market’s performance. The U.S. economy grew at an annual rate of 3% in the second quarter, exceeding the initial estimate of 2.8%. Additionally, weekly U.S. jobless claims declined to 231,000, a positive sign for the labor market.
Dow Hits Record High – Fed Rate Cut Expectations
Investors are closely monitoring economic data to gauge the Federal Reserve’s interest rate policy. Chair Jerome Powell has indicated a rate cut is likely in September, with the market anticipating additional cuts later this year.
The Dow’s record-breaking performance highlights the ongoing resilience of the U.S. stock market. While the Nasdaq and S&P 500 experienced some volatility, the overall market remains optimistic.
With the release of more economic data and key earnings reports expected in the coming weeks, the stock market’s trajectory will continue to be influenced by a balance of incoming information and investor sentiment.
