The U.S. stock market saw a mixed day on Thursday, with most stocks slipping but overall hope for future interest rate cuts and excitement surrounding artificial-intelligence technology driving indexes to new record highs. The S&P 500 reached a new all-time high, while the Nasdaq composite also climbed from its own record. Despite these gains, the Dow Jones Industrial Average fell slightly.
The bond market also saw Treasury yields easing as expectations grew that inflation is slowing enough to prompt the Federal Reserve to cut interest rates later in the year. Recent reports on inflation levels at both the wholesale and consumer levels showed lower numbers than expected, leading to speculation about upcoming rate cuts. The high interest rates have been impacting various sectors of the economy, with hopes that a slowdown in growth can help alleviate inflationary pressures without causing a deep recession.
While some companies struggled due to economic pressures, others thrived due to the ongoing excitement surrounding artificial-intelligence technology. For example, Broadcom saw a significant jump in stock price after strong quarterly profits, driven by demand for AI technologies. Tesla also rose after CEO Elon Musk hinted at positive results for his pay package vote. Overall, the market remains optimistic about future growth while keeping an eye on potential economic disruptions, such as upcoming elections and geopolitical events around the world.
