Breaking News: Dow Hits Record High Despite FedEx Slump and Fed Rate Cut - What It Means for Your Investments
In a surprising turn of events, the Dow managed to close at record highs on Friday, despite a slump in FedEx and expectations for more Federal Reserve rate cuts. At 4.00 p.m. ET, the Dow rose by 38 points to reach a new high of 42,063.36. Meanwhile, the S&P 500 dropped by 0.2% and the Nasdaq slipped by 0.4%.
Stocks received a boost this week after the Federal Reserve made a significant 50 basis point interest rate cut. Historically, stocks tend to perform well when the Fed is cutting rates while the US economy is still growing. Analysts at UBS believe that markets are now expecting this positive outcome, signaling a turnaround from concerns earlier in August.
Federal Reserve speakers returned to the spotlight after the rate cut, with remarks from Philadelphia Fed president Patrick Harker and Fed Governor Michelle Bowman in focus. Bowman, who was the sole voting Fed member to oppose the 50 basis point cut, expressed concerns about stoking inflation expectations.
In other news, FedEx stock tumbled by 15% due to weaker-than-expected quarterly earnings, while Nike stock surged by nearly 7% following the announcement of a CEO change. American Airlines is also in talks to partner with Citigroup as its exclusive credit card issuer, potentially leaving Barclays behind.
Overall, these developments in the market highlight the impact of central bank decisions, corporate earnings, and leadership changes on stock prices. As an investor, it's crucial to stay informed about these factors to make informed decisions about your portfolio and financial future.