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Stock Market Today: Dow closes above 40,000 for first time to extend wining streak

Published 05/16/2024, 08:08 PM
Updated 05/17/2024, 04:08 PM
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Investing.com-- The Dow closed above 40,000 for the first time ever on Friday, notching a five-week win streak as rate-cut hopes and mostly upbeat quarterly earnings from corporates stoked bullish bets on stocks. 

At 16:00 ET (21:00 GMT), Dow Jones Industrial Average added 135 points, or 0.3% to closed at a record high of 40,003.59, the S&P 500 was up 0.2%, while the NASDAQ Composite fell 0.1%. 

Take-Two shrugs off GTA delay news; Doximity shines on earnings stage

Take-Two Interactive Software Inc (NASDAQ:TTWO) rose more than 1% even as the video game maker lowered its bookings guidance for 2025 after delaying the release of Grand Theft Auto game to the fall of 2025. The video game did, however, deliver quarterly that beat Wall Street estimates.

Despite delays, however, management "noted that expectations for GTA's commercial impact have increased and expects bookings to ramp from fiscal 2025 to fiscal 2027," UBS said. 

Doximity Inc (NYSE:DOCS) rose more than 18% after reporting fiscal fourth-quarter results that beat on both the top and bottom lines. The online networking platform company also announced a $500 million stock buyback program.     

Chip stocks stutter despite AMD gains; Gamestop slumps on share sale

Advanced Micro Devices Inc (NASDAQ:AMD) gained more than 1% after Reuters reported that Microsoft (NASDAQ:MSFT) plans to offer its cloud customers AMD chips as an alternative to Nvidia chips.

NVIDIA Corporation (NASDAQ:NVDA) fell 2% on the news. 

GameStop Corp (NYSE:GME), meanwhile, fell 20% after unveiling plans to sell up to 45 million shares in an at-the-market offering and reporting preliminary results that showed a fall in first-quarter results.   

Reddit surges on OpenAI partnership

Social media platform Reddit (NYSE:RDDT) jumped 10% after it entered a partnership with artificial intelligence major OpenAI to add its content to the firm’s AI products. 

Boeing (NYSE:BA) was 1% higher ahead of shareholder vote on whether outgoing Chief Executive David Calhoun will retain his seat on the board of the embattled planemaker.

Wall Street set for weekly gains

Helping the tone this week has been softer-than-expected consumer inflation readings, which drove these averages to record highs on Wednesday and Thursday. 

However, several Fed officials have since warned that the central bank still needed more confidence to cut interest rates, and that the timing of the move remained uncertain, limiting volatility Friday.

Fed Gov. Bowman said on Friday that she would be willing to back a hike if disinflation stalls, or reverses, added that she was monitoring data to evaluate whether policy was sufficiently restrictive. 

“While the current stance of monetary policy appears to be at a restrictive level, I remain willing to raise the target range for the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed,” Bowman said.

Bowman's remarks followed a slew of Fed speak this week that called for higher for longer rates to assess incoming data.

Their comments saw investors second-guess expectations for rate cuts this year, with traders slightly paring bets on a reduction of 25 basis points in September, according to the CME Fedwatch tool. 

(Peter Nurse, Ambar Warrick contributed to this article.)

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