[New York Stock Market] Dow Surpasses 40,000 with Intraday Record High... Closes with Broad Gains

Dow Jones Index Closes Above 40,000 for the Second Time
S&P Hits Intraday Record High
September Rate Cut Expectations Rise

The New York stock market closed higher across the board.

On the 12th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 0.62% (247.15 points) from the previous trading day to close at 40,090.

The S&P 500 index closed at 5,615.35, up 0.55% (30.81 points) from the previous day, and the Nasdaq Composite index rose 0.63% (115.04 points) to close at 18,398.45.

[Image source=Yonhap News]

After a sell-off mainly in large tech stocks the previous day, the S&P 500 and Nasdaq indices rebounded as bargain buying flowed in. The S&P 500 index extended its gains during the session to reach a new all-time high of 5,655.56.

The Dow also hit a new record high of 40,257.24 as buying interest spread to blue-chip stocks beyond just tech stocks. This was the second time the Dow closed above the 40,000 mark, following May 17.

The strength in the stock indices on this day was supported by the June U.S. Producer Price Index (PPI) exceeding expectations, while the core PPI and detailed components showed moderation, which revived bargain buying sentiment. This also sparked hopes that the September interest rate might be cut.

According to the U.S. Department of Labor, the June Producer Price Index (PPI) rose 0.2% month-over-month, surpassing the market expectation of a 0.1% increase. The June core PPI, which excludes food, energy, and trade services, was flat compared to the previous month. This was a slowdown from the 0.2% monthly increase in May’s core PPI. On a year-over-year basis, the June PPI rose 3.1%, below May’s 3.3% figure.

Among major stocks, large tech stocks showed mixed movements. Apple, Nvidia, and Tesla rose, while Microsoft, Amazon.com, Meta Platforms, and Broadcom declined.

The tech-heavy Nasdaq index expanded its intraday gains up to 1.27%, but the increase narrowed to 0.55% just before the close.