American investors conclude the day with slight setbacks.
For the first time in history, the Dow Jones hits the 40,000 mark. Despite this, it closes 0.1% lower at 39,869 points. Major indices suffer minor losses too. On the bright side, Warren Buffett owned holding company's investment in a Swiss insurer boosts its shares.
On US stock markets, the Dow Jones crosses the 40,000 point barrier due to optimism about falling interest rates. However, the index takes a dive and closes 0.1% lower at 39,869 points. The S&P 500 drops 0.2% to 5297 points, and the Nasdaq 0.3% to 16,698 points. Investors are more optimistic about a rate cut by the Fed in September due to the recent decrease in US inflation.
The Dow passing the 40,000 mark signifies the ongoing growth of the entire US economy, according to Quincy Krosby, chief strategist at independent broker-dealer LPL Financial. Despite worries about rising inflation, all three major indices had reached new highs the previous day after April's consumer prices showed an unexpectedly high rise, though not as high as anticipated.
The anticipation of a Fed interest rate change this fall drove up oil prices. North Sea Brent crude increased by 0.7% to cost $83.32 per barrel (159 liters). US WTI crude also climbed 0.8% to $79.29 per barrel. Other notable stocks include Walmart, where a rise in first-quarter spending boosted its confidence for the rest of the year. The shares of Swiss insurer Chubb rose by 4.7% due to a billion-euro investment by Warren Buffett's firm. U.S. conglomerate 3M saw a 3.6% rise after analysts upgraded its shares from "hold" to "buy". However, Deere's shares fell by 4.7% as it had lowered its profit expectations for the current year for the second time. This was due to a decrease in sales of large agricultural machinery, with farmers hesitant to purchase due to falling harvests.
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Source: www.ntv.de
