New York Stock Market Pauses Amid Fatigue from 'Big Cut Rally'... Only Dow Hits Record High

0.5% Point Interest Rate Cut Rally Followed by Stabilization
Dow Only Hits Another All-Time High Again

The U.S. New York stock market closed flat due to fatigue after the 'big cut' (0.5 percentage point interest rate cut) rally. The Dow Jones Industrial Average hit another all-time high thanks to gains in Nike.

On the 20th (local time), the Dow Jones Industrial Average rose 38.17 points (0.09%) to 42,063.36, continuing its record-breaking streak. However, the S&P 500 index fell 11.09 points (0.19%) to 5,702.55, and the Nasdaq Composite Index dropped 65.66 points (0.36%) to 17,948.32. Over the week, the S&P 500 rose 1.36%, the Nasdaq increased 1.49%, and the Dow gained 1.62%. Among the 11 sectors of the S&P 500, the utilities sector rose the most, up 2.69%.

Following the Federal Reserve's (Fed) 50 basis point (1bp=0.01 percentage point) rate cut on March 18, 2020?the first in four and a half years?the rally continued, with only the Dow showing an upward trend while the other indices took a breather.

After The Wall Street Journal reported that Qualcomm made a takeover offer to Intel, Intel's stock rose more than 3%. Nike surged 6.84%. Nike's stock jumped nearly 7% on news that Elliott Hill, who worked at Nike for 32 years since 1988 and retired in 2020, would return as the new CEO. Tesla and Nvidia fell 2.32% and 1.59%, respectively.