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Indexes Hit New Highs as Dow hits 40,000.

Indexes Hit New Highs as Dow hits 40,000.

May 21, 2024

Stocks hit new highs last week, with the Dow Jones closing above 40,000 for the first time. All major U.S. stock indices also set new records. People are hopeful that the Federal Reserve might cut interest rates sooner because April retail sales were slower than expected and lower-income consumers are feeling stressed. The Dow, S&P 500, Nasdaq, Russell 2000 (small companies) and MSCI Emerging Markets indexes all increased.

The U.S. Leading Economic Indicators (LEI) index, which predicts future economic activity, fell by 0.6% in April. This drop was due to consumers being less optimistic, fewer new orders, and fewer building permits. However, the decline over the past six months was smaller than the previous six months.

Nine out of 11 major stock market sectors went up last week, led by Technology, Real Estate, and Healthcare. Industrials and Consumer Discretionary sectors fell.

Interest rates on 10-year Treasury notes went down slightly, ending at 4.421%. The U.S. Dollar's value increased, and gold prices reached a new high. Oil and copper prices also went up.

The views stated herein are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.

S&P 500 – A capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

The Russell 2000 Index is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell Index. It was started by the Frank Russell Company in 1984. The index is maintained by FTSE Russell, a subsidiary of the London Stock Exchange Group

Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.