Stocks are adding to their gains on Wall Street, sending the Dow Jones Industrial Average above 40,000 points for the first time.
The market had rallied a day earlier following a report showing that inflation was cooling. The Dow was up 106 points, or 0.3%, to 40,019 in mid-morning trading Thursday.
The S&P 500, which is widely tracked by index funds, was up 0.2%. The Nasdaq composite edged up 0.2%. Treasury yields were relatively steady following a mixed set of reports on the economy.
Economy
Inflation falls for first time in 2024
Walmart rose after reporting stronger profit for the latest quarter than expected. It also said its revenue for the year could top the forecasted range it had earlier given. That could be an encouraging signal for the broader economy, as worries have risen about whether U.S. households can keep up with still-high inflation and more expensive credit-card payments.
Target, which reports its quarterly results next week, was also rising, along with other retailers like Dollar General.
Chubb rose 5.5% after Warren Buffett’s Berkshire Hathaway disclosed it had built an ownership stake in the insurer.
Economy
Federal Reserve foresees 3 rate cuts this year
Stronger-than-expected profit reports have been one of the main reasons U.S. stock indexes jumped through May to records following their tough April. Another has been revived hopes that the Federal Reserve will be able to cut its main interest rate at least once or twice this year.
A string of worse-than-expected reports on inflation at the start of the year had put the potential for such cuts in jeopardy, but some more encouraging data has since arrived.
