Investing.com — The Dow Jones closed above 40,000 for the first time ever on Friday, snapping a five-week winning streak as interest rate cut hopes and companies’ mostly positive quarterly earnings fueled bullish bets on stocks.
At 4:00 PM ET (21:00 GMT), it added 135 points, or 0.3%, to close at a record high of 40,003.59, and rose 0.2%, while down 0.1 % decreased.
Take-Two Ignores GTA Delay News; Doximity shines in the profit phase
Take-Two interactive Software Inc (NASDAQ:) rose more than 1% even as the video game maker lowered its 2025 booking guidance after delaying the release of the Grand Theft Auto game until fall 2025. However, the video game delivered a better result each quarter on then Wall Street estimates.
However, despite delays, management noted that expectations for GTA’s commercial impact have increased and expect bookings to increase from fiscal 2025 to fiscal 2027, UBS said.
Doximity Inc (NYSE:) rose more than 18% after reporting fiscal fourth-quarter results that beat both the top and bottom lines. The online networking platform company also announced a $500 million stock buyback program.
Chip Stocks Falter Despite AMD Gains; Gamestop plummets due to share sale
Advanced Micro Devices Inc (NASDAQ:) gained more than 1% after Reuters reported that Microsoft (NASDAQ:) plans to offer its cloud customers AMD chips as an alternative to Nvidia chips.
NVIDIA Corporation (NASDAQ:) fell 2% on the news.
GameStop Corp (NYSE:), meanwhile, fell 20% after unveiling plans to sell up to 45 million shares in an at-the-market offering and reporting preliminary results that showed a decline in first-quarter results.
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Reddit expands the OpenAI partnership
Social media platform Reddit (NYSE:) rose 10% after it partnered with OpenAI, a major artificial intelligence company, to add its content to the company’s AI products.
Boeing (NYSE:) was up 1% ahead of a shareholder vote on whether outgoing CEO David Calhoun will retain his seat on the embattled aircraft manufacturer’s board.
Wall Street poised for weekly gains
The tone this week was partly set by softer-than-expected numbers, which pushed these averages to record highs on Wednesday and Thursday.
However, several Fed officials have since warned that the central bank still needs more confidence to cut rates, and that the timing of this move remained uncertain, limiting volatility on Friday.
Fed Governor Bowman said Friday she would be willing to support a hike if disinflation stalls or reverses. She added that she was monitoring the data to assess whether the policy was sufficiently restrictive.
“While the current stance of monetary policy appears to be restrictive, I remain prepared to raise the target range for the Federal Funds Rate at a future meeting should incoming data indicate that progress on inflation has stalled came or has been reversed,” Bowman said. .
Bowman’s comments followed a series of statements from the Fed this week calling for higher interest rates to assess incoming data.
Their comments showed investors were questioning expectations for rate cuts this year, with traders slightly downgrading their bets on a 25 basis point cut in September, according to the tool.
(Peter Nurse, Ambar Warrick contributed to this article.)
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