Breaking News: Dow Inches Closer to Record High Despite Inflation Concerns and Earnings Reports from Wall Street Banks
In a surprising turn of events, the Dow Jones Industrial Average closed just shy of a fresh closing record, hitting an all-time high on Friday. This comes as investors digest better-than-expected quarterly earnings from major Wall Street banks like JPMorgan Chase, Citi, and Wells Fargo.
The Dow rose 1.1% to close near a record of 40,003, set on May 13, after hitting an intraday all-time high of 40,257.24. Meanwhile, the S&P 500 added 0.6%, and the Nasdaq was up 0.5%.
The second-quarter earnings season kicked off with a bang as JPMorgan Chase reported results that topped Wall Street estimates, though concerns lingered over net interest income and loan loss provisions. Wells Fargo cut its outlook for net interest income, leading to a 5% drop in shares, while Citigroup Inc. stock fell nearly 1% after their earnings report.
Investors are eagerly awaiting robust profit growth from a variety of companies, which could potentially extend the rally in U.S. stocks beyond the dominant tech sector.
On the inflation front, the producer price index (PPI) saw a modest uptick of 0.2% last month, slightly higher than economists' expectations. Core PCE, which excludes food and energy, also rose in June, beating estimates.
Despite concerns over inflation, market participants are now pricing in an 86% chance of a rate cut by the Federal Reserve in September, up from 72% a week prior.
In other news, Tesla managed to cut losses despite a downgrade from UBS, while Carvana accelerated to a 52-week high after receiving a buy rating from BTIG.
In conclusion, the markets are showing signs of resilience despite inflation concerns and mixed earnings reports. Investors should remain vigilant and stay informed about the latest developments to make informed decisions about their finances.