DJI: Dow Jones Enters June on Upbeat Note After Signing Off on Best Day of 2024

Blue-chip index added a whopping 574.84 points Friday following good news on inflation. Fed’s price gauge was flat in April.

• The Dow Jones Industrial Average DJI is stepping into June with style after logging its best day of 2024. On Friday, the 30-stock benchmark index added a hulking 574.84 points, or 1.5%, to wrap up the five months through May at 38,686.32. Earlier in May, the Dow crossed 40,000 for the first time but later pared back some of the gains as investors turned to the S&P 500 and the Nasdaq Composite in pursuit of better returns.
• And indeed, while the Dow has penciled in a 2.6% year-to-date increase, its two peers are way ahead. The broad-based S&P 500 clocked out of May riding an 11% gain on the year. The tech-heavy Nasdaq Composite is up 13% for the same period thanks to AI plays such as chip giant Nvidia NVDA. Back to the Dow Jones — what made the equity average soar on Friday and cap a winning week?
• The Federal Reserve’s favorite inflation gauge — Personal Consumption Expenditures — arrived flat for April at a 2.7% clip. In other words, stubborn prices didn’t rise for the month and that fueled investor hopes of interest rate cuts. The US central bank, the Fed, has previously said it is monitoring the economy for any signs of cooling needed to consider reducing borrowing costs. This was a strong sign.