Investing.com – The Dow Jones Industrial Average closed above 40,000 for the first time on Friday, snapping a five-week winning streak as hopes for rate cuts and largely upbeat quarterly corporate earnings fueled bullish bets on stocks.
At 4:00 pm ET (2100 GMT), shares were up 135 points, or 0.3%, to close at a record high of 40,003.59, up 0.2% and down 0.1%. .
Take-Two shrugs off GTA delay news; Proximity shines at the earning stage
Take-Two Interactive Software Inc (NASDAQ:) shares rose more than 1% even as the video game maker cut its 2025 order guidance after delaying the release of Grand Theft Auto to fall 2025. However, the video game’s quarterly performance outperformed Wall. Street assessments.
However, despite the delays, management “noted that expectations for the GTA’s commercial impact have increased and expects bookings to increase from fiscal 2025 to fiscal 2027,” UBS said.
Shares of Doximity Inc (NYSE:) rose more than 18% after reporting fiscal fourth-quarter results that beat both revenue and profit. The online platform company also announced a $500 million share buyback program.
Chip Stocks Fluctuate Despite AMD’s Rise; Gamestop falls sharply as shares sell off
Advanced Micro Devices Inc (NASDAQ:) shares gained more than 1% after Reuters reported that Microsoft (NASDAQ:) plans to offer AMD chips to its cloud customers as an alternative to Nvidia chips.
NVIDIA Corporation (NASDAQ:) shares fell 2% on the news.
GameStop Corp. (NYSE:), meanwhile, fell 20% after unveiling plans to sell up to 45 million shares in a public offering and reporting preliminary results that showed a drop in first-quarter results.
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Reddit OpenAI partnership surge
Social media platform Reddit (NYSE:) jumped 10% after partnering with artificial intelligence major OpenAI to add its content to the company’s AI products.
Boeing (NYSE:) shares rose 1% ahead of a shareholder vote on whether outgoing CEO David Calhoun will retain his seat on the struggling planemaker’s board.
Wall Street set for weekly gains
Supporting sentiment this week was softer-than-expected data that 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 interest rates and that the timing of that move remains uncertain, limiting volatility on Friday.
Federal Reserve Chair Bowman said Friday she would be willing to support a rate hike if deflation stops or reverses, adding that she is monitoring data to assess whether policy is restrictive enough.
“Although the current monetary policy stance appears to be at a contractionary level, I remain willing to raise the target range for the federal funds rate at a future meeting if incoming data shows that progress on inflation has stalled or reversed,” Bowman said. .
Bowman’s remarks followed a flurry of Fed speeches this week that called for higher and higher rates to evaluate incoming data.
Their comments showed investors had overestimated expectations for a rate cut this year, with traders slightly trimming bets on a 25 basis point cut in September, according to the instrument.
(Peter Nurse and Ambar Warrick contributed to this article.)
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