The Dow Jones closed up 4 points, and the Nasdaq recorded a new high for the 11th time>>The Dow Jones closed at 39,069.59 points, up 4.33 points after inflation showed a downward trend. Increased confidence that the Fed will cut interest rates this year. Technology stocks helped the Nasdaq index reach its new highest level this year, No. 11, while crude oil prices rose by 1.1%.

The Dow Jones Industrial Average (DJIA) closed May 24, 2024 at 39,069.59 points, up 4.33 points or +0.01% after reporting data showing that US consumers lowered their inflation expectations. This supports confidence in the Federal Reserve's direction to lower interest rates this year. The Standard & Poor's 500 index closed at 5,304.72 points, up 36.88 points, or 0.70%.

The Nasdaq index closed at 16,920.80 points, rising 184.77 points +1.10%, which is the highest ever. From the rise of chip maker Nvidia
But this week, the Dow Jones Industrial Average fell by 2.33% after rising for five weeks in a row, the S&P rose by 0.03%, and the Nasdaq rose by 1.41%.
Nvidia stock rose 2.6% on strong earnings calls, pushing shares above $1,000 for the first time. A positive outlook for giant AI and other technologies pushed the market higher, with AMD shares and Intel shares rising by 3.7% and 2.1%, respectively. Shares of Meta and Netflix rose 2.7% and 1.7%, helping the Nasdaq hit its 11th record high of the year.

The market supports consumer expectations of a slowdown in inflation. The University of Michigan reports survey results and final consumer confidence fell from 77.2 in April to 69.1 in May. This is the lowest level in six months and below the initial figure of 67.4 and below the 76.0 that analysts had expected.

Consumers also expect inflation to rise to 3.3% over the next year, down from 3.5% in the previous survey. Over the next five years, consumers expect inflation to rise to 3.0%, down from 3.1% in the previous survey.

Consumers are not pessimistic about inflation expectations, said Jeff Roche of LPL Financial. Consumer spending may slow. This reduces inflationary pressures from the demand side of the economy.

After announcing a series of strong economic and labor market data this week, Goldman Sachs pushed back its forecast for the Fed's first interest rate cut to September from July.

CME's FedWatch tool indicates that traders view opportunity as missing. 50% that the Fed will cut interest rates at its September meeting, down from 54.8% last week.

As for other economic data announced, the Commerce Department reports that orders for durable goods such as aircraft, cars and large machinery with a useful life of three years or more rose by 0.7% in April, compared to analysts’ expectations for a decline of 0.9%. Which does not include aircraft and weapons goods rose by 0.3%, which is higher than the 0.1% that analysts expected from the Federal Reserve Bank in Atlanta and shows that the economy expanded in the second quarter of this year by 3.5%.

European markets closed negative and were revised this week. This is due to signs of price pressure in the US. The euro zone economy continues to recover and this causes concern about the trend of reducing interest rates by central banks in major countries this year.

This week, the STOXX 600 fell nearly 0.4% and was the biggest drop in three weeks.
Investors became more cautious after European policymakers warned of further monetary easing after June. This is to avoid causing upward pressure on prices. Especially if the US Federal Reserve continues to delay easing monetary policy.
Traders see a chance that the European Central Bank will cut interest rates to 0.55% from 0.67% last week.
Eurozone bond yields rose weekly to their highest levels in a month. The survey results showed that business activities in May and in the euro area expanded at the fastest pace in a year. Another set of data confirmed that the German economy expanded in the first quarter of 2024.
Shares of French automaker Renault rose 5.2% and were among the biggest gainers. After announcing plans to buy back shares, UBS raised its investment recommendation to neutral from sell.
The STOXX 600 index closed at 520.57 points, down 0.99 points, or -0.19%.
The London Stock Exchange FTSE 100 index closed at 8,317.59 points, down 21.64 points, or -0.26%.
The French Stock Exchange CAC-40 index closed at 8,094.97 points, down 7.36 points, or -0.09%.
The German DAX stock market index closed at 18,693.37 points, up 2.05 points, or +0.01%.
West Texas Intermediate crude futures for July delivery rose 85 cents, or 1.11%, to close at $77.72 a barrel. The price of Brent North Sea crude for July delivery increased by 76 cents, or 0.93%, to close at $82.12 per barrel.

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