Wall Street Settles Lower after Dow Jones Breaks 40,000 Milestone

Dow Jones breached the significant 40,000 milestone briefly on Thursday, marking a new high but eventually ended the day with a slight decline.

Market participants witnessed the index hitting an intraday peak of 40,051.05, emphasizing the psychological importance of breaking the 40,000 level before retracting to close with a 0.1% decrease.

While the S&P 500 retreated by about 0.2% after surpassing the significant 5,300 level, the Nasdaq Composite also experienced a nearly 0.3% decrease after reaching an all-time high. These market movements occurred amidst optimism regarding a potential interest rate cut this year.

According to the Bureau of Labor Statistics of the Labor Department, the consumer price index (CPI) rose by 0.3% from March, slightly below the estimated 0.4% by Dow Jones estimates.

Despite the monthly increase, the CPI showed a 3.4% rise over the twelve-month period, meeting expectations. The report highlighted that price increases in April were driven significantly by higher costs in shelter and energy. Shelter expenses, which have been a concern for Federal Reserve officials aiming for lower inflation this year, increased by 0.4% monthly and 5.5% annually. The energy index also saw a 1.1% monthly increase and a 2.6% annual rise. However, food prices remained unchanged monthly and saw a 2.2% uptick yearly.