US Equities Edge Lower After Breaking New Records This Week – US Market Wrap

The world’s largest stock market hovered near all-time highs, with the Dow Jones Industrial Average reaching the historic 40,000 level on bets that interest rate cuts will continue to fuel Corporate America.

The oldest of Wall Street’s three major stock indexes has been boosted by expectations of a resilient economy, low inflation, and strong corporate earnings. It took 872 trading sessions through Wednesday for the Dow to reach its latest 10,000-point milestone, or a 33% gain, with the index recouping all of its losses from the Federal Reserve’s aggressive rate hikes over the last two years.

The last time the blue-chip index surpassed 30,000 was in November 2020, amid a slew of market-friendly developments that unleashed animal spirits despite the ongoing pandemic. This time, the market is defying the old adage “sell in May and go away,” with stocks on track for their best month since 2024.