4:10pm: Major indices post weekly gains
The Dow closed above the milestone of 40,000 for the first time on Friday afternoon, driven by renewed expectations of an impending rate cut.
The Dow rose by 0.3% on the day to finish at 40,003, a new record high. Elsewhere, the S&P 500 edged up 0.1% at 5,303 but the Nasdaq slipped by 0.1% to 16,686.
The market's optimism was tempered by comments from Federal Reserve officials indicating that interest rates are likely to remain elevated for an extended period, dimming hopes for a September rate cut.
"For investors, the Dow’s breach of 40,000 represents the proverbial pot of gold at the end of the rainbow," analysts at Channelchek wrote Friday.
"The milestone solidifies the “Goldilocks” scenario playing out of moderating inflation and resilient growth, providing a springboard for further gains as concerns over economic overheating fade. While risks remain of a potential inflationary resurgence, excessively tight labor conditions forcing more Fed hawkishness, or a hard landing, the prevailing mood is overwhelmingly bullish."
Individual stocks saw Reddit (NYSE:RDDT) shares surge following a partnership announcement with OpenAI, while GameStop shares tumbled after the company forecasted a drop in first-quarter sales due to shifting consumer behavior towards online platforms.
Looking ahead, investors will monitor corporate earnings reports from Zoom, Lowe's, Target, and Nvidia, particularly focusing on Nvidia's performance amidst growing demand for AI technology. Additionally, attention will be on testimony from Fed officials on Capitol Hill early next week.
12:09pm: Silver above $30
The three major stock indexes were little changed at midday as investor enthusiasm cooled and some engaged in profit-taking following a record-breaking week for equities.
The Dow Jones was up 0.1% at 39,905 points while the S&P 500 and Nasdaq were both flat at 5,299 points and 16,669 points respectively.
Meanwhile, silver hit an 11-year high above $30 per ounce.
IG senior market analyst Axel Rudolph said silver’s gains were fuelled by "solid investment and industrial demand."
“Meanwhile the gold price also added to this week's gains and trades back above the $2,400 level, close to its April record high while nickel prices shot up on supply worries to levels last traded in September,” he said.
“The crude oil price's recovery off its two-month lows did just enough to end the week in positive territory as well, following this week's inventory data."
9.37am: US opens flats
US stocks opened flat on Friday with video games and social media appearing to be today's focus for the markets.
The Dow Jones opened at around 39,907, while the S&P 500 was at 5,303.
Meanwhile, the tech-heavy Nasdaq lifted 12 points higher to 16,711.
One stock making moves was Take-Two Interactive, the gaming company which owns Rockstar and 2K, as it opened around 3.5% higher after GTA 6 was given a release date.
The Rockstar Games owner announced that the latest instalment in the series would be released in the fall of 2025 alongside results on Thursday.
Reddit (NYSE:RDDT) (Reddit (NYSE:RDDT)) shares jumped 15% after it announced a new partnership with ChatGPT creator OpenAI.
Content from the Reddit (NYSE:RDDT) platform is expected to be taken in by OpenAI’s ChatGPT system and other products, meanwhile, OpenAI will also become a Reddit (NYSE:RDDT) advertising partner.
OpenAI will access Reddit’s data API to obtain real-time, structured, and unique content from the social media platform, the social media group said.
9.22am: Gamestop crashes down to reality following results
Gamestop shares have sunk 20% in premarket trading as the memestock was hit by a douse of reality in the form of its first quarter results.
Shares in the video game retailer stormed 271% higher on Monday and Tuesday following the return of Roaring Kitty, the online financial analyst famed for his involvement in the first round of the Gamestop saga.
However, they crashed 57% in the following two days and Friday's results have helped this trend continue.
Sales in the first quarter dipped to between US$872 million and US$892 million, representing a sharp decline compared to last year's US$1.2 billion.
Giacomo Pierantoni, head of data at Vanda Research, said: “It appears to me that the mini bubble is collapsing.”
Shares are set to open on Friday at US$21.70, up on the US$17.21 it started the week at.
8.30am: US stocks to open flat
Wall Street is set to open flat on Friday, closing out a week which saw both the Nasdaq and S&P 500 hit record highs, as well as the Dow Jones break through the 40,000 mark.
Dow Jones futures are trading around 22 points higher, implying an open of around 39,998, while the S&P 500 and Nasdaq are expected to open at 5,319 and 18,644, respectively.
Todd Morgan, chairman at Bel Air Investment Advisors, said: "The Dow’s remarkable rise has exceeded many expectations, including my own, but our perspective remains unchanged
"Through wars, recessions, elections, impeachments, financial crises and on and on, investing for the long term in high-quality stocks is the key to building wealth.”
David Morrison, senior market analyst at Trade Nation, added: "Investors have been keen to jump on positive news while ignoring anything that could upset the bullish narrative.
"This week’s PPI and CPI data wasn’t great. But the fact that CPI matched expectations with a modest year-on-year dip from the prior month was enough to keep the rally going."