Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Futures tied to the Dow Jones Industrial Average traded near flat Friday, after the preceding session brought much fanfare, with the blue-chip average briefly touching the key 40,000 milestone for the first time.
Futures connected to the 30-stock index rose 6 points. S&P 500 futures and Nasdaq 100 futures also both traded near their flatlines.
While it was a modestly down day for the three major averages, there was no shortage of excitement among market participants. The Dow reached an intraday high of 40,051.05, above the psychologically important 40,000 level, before pulling back to end the day down 0.1%.
“The Dow’s remarkable rise has exceeded many expectations, including my own, but our perspective remains unchanged,” said Todd Morgan, chairman at Bel Air Investment Advisors. “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.”
The broad S&P 500 retreated about 0.2% on Thursday after breaking above the closely watched 5,300 level for the first time a day prior. Meanwhile, the Nasdaq Composite finished Thursday’s session down nearly 0.3% after also reaching an all-time high.
These milestones come amid hopes that rates have peaked, according to Thomas Martin, senior portfolio manager at Globalt Investments. Continued optimism around artificial intelligence and corporate earnings growth also helped push the market into these uncharted waters, he added.
Despite the weak end to Thursday’s session, the indexes are on track to end the week with gains. The Nasdaq Composite is leading the way with a 2.2% advance, followed by the S&P 500’s 1.4% rise. The Dow is tracking to close the week 0.9% higher.
This week’s ascent has helped propel the three indexes into positive territory for the second quarter despite a tough start. The S&P 500 and Nasdaq are now each up more than 11% in 2024, while the Dow has climbed more than 5% on the year.
Investors will watch for leading indicators data due Friday morning. There are no major financial reports from companies expected as earnings season winds down.
