The Dow closed above 27,000 for the first time ever Thursday, while the S&P 500 also notched a record close. Investors have been piling into stocks in recent weeks amid expectations that the Fed will cut interest rates later this month.
The Dow climbed 130 points to an all-time high. The S&P 500 traded 0.15% higher and also reached a record. The Nasdaq advanced 0.2%.
Expectations for lower rates persist despite the release of stronger-than-expected economic data. The producer and consumer price indexes — two widely followed measures of inflation — rose more than expected last month, the Labor Department said this week. Last week, the U.S. government reported stronger-than-expected jobs growth for June.
Market expectations for lower rates currently sit at 100%, according to the CME Group’s FedWatch tool. Traders are also pricing in a 20% chance of the Fed cutting by 50 basis points.
