Dow hits new record, gold touches all-time high

by Jonathan Adams
Dow Jones

The Dow piled on 1.9% or over 740 points to close at 40,954.48, posting a second consecutive record

The Dow soared to a new record Tuesday while gold prices also reached an all-time high, as rising expectations for Fed interest rate cuts in 2024 lifted Wall Street to new heights.

After a down session in Europe, major US indices again rose, led by the blue-chip Dow index.

The Dow piled on 1.9% or over 740 points to close at 40,954.48, posting a second consecutive record. The S&P 500 also rose to a new all-time high.

The records were driven partly by outsized gains for Bank of America and Dow member UnitedHealth Group following earnings reports, as well as an ongoing rotation of funds towards smaller firms that have underperformed in 2024 but are expected to be boosted by Fed interest rate cuts.

On Tuesday, Fed Governor Adriana Kugler said the US central bank could move to cut interest rates sooner rather than later if the job market cools “too much.”

Briefing.com analyst Patrick O’Hare described the current ethos on Wall Street as assuming “a perfect environment where the stock market gets the best of both worlds” in which the Federal Reserve lowers interest rates as inflation slows without leaving the economy in recession.

He also cited rising expectations for a win by Donald Trump in the 2024 US presidential election, which could lead to tax cuts and higher corporate profits due to deregulation.

Shifting expectations on the Fed also propelled gold to a new record. The precious metal climbed 1.9% to 2,450.07 dollars per ounce.

But bourses in London, Paris and Frankfurt all dropped.

German investor confidence fell for the first time in a year in July, as per the ZEW institutes economic expectations index.

The IMF weighed in with its latest global outlook update, which suggested the world economy will grow 3.2% this year, unchanged from its April forecast.

But the IMF cut its forecasts for the US and Japan and also warned of ongoing inflation risks and trade tensions ahead.

Earlier, in Asia, Hong Kong declined more than 1% owing to further losses in the tech sector, while Sydney, Singapore, Manila, Bangkok and Jakarta also dropped.

Tokyo, Seoul, Wellington, Taipei and Mumbai rose and Shanghai was marginally higher with traders awaiting policy measures from China’s leaders as they hold a key economic meeting this week.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Trading and Investment News. The information provided on Trading and Investment News is intended for informational purposes only. Trading and Investment News is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Related Posts

    Sign up for our newsletter

    Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

    © Copyright 2024-25
    Trading and Investment News.
    Managed By News Media International A Brand Of CAS Media Group Publishing Ltd whose registered office is – 12 Deer Park Road, Wimbledon, SW19 3TL.

    Latest articles