As optimism on Wall Street grew that the American economy could pull off the extraordinary feat of controlling high inflation without entering a recession, U.S. stocks ended another record-breaking week with a muted performance on Friday.
The previous day's all-time high, the 42nd record of the year, index corrected by a marginal level of 0.1 per cent. Before setting another day-high level with meagre advances, the S&P 500 rang the opening bell at 5,755.36 points on the US bourses.
The S&P 500 touched a day-low level at 5,727.34 points; the closing bell was tolled at 5,738.17 points on the US stock exchanges.
Nasdaq composite
A 0.4 per cent decline was seen in the Nasdaq composite; the tech heavy index containing magnificent seven companies like Nvidia, Apple, Amazon, etc. was seen to be declined after ringing the opening bell at 18,228.78 points.
The Nasdaq Composite went on to touch the day-low level of 18,069.18 points after slipping below the closing level of the previous trading session. The Nasdaq Composite concluded a last trading session of the week at 18,119.59 points.
Dow Jones Industrial Average
On the other hand, the Dow Jones Industrial Average increased by 137 points, amounting to 0.3 per cent, to set a record. The Dow managed to set a new record with a sizable move of 1 per cent at a record-high level of 42,628.32 points.
The Dow Jones Industrial Average hit the opening bell at 42,227.95 points, before reaching a new record high level at 42,628.32 points. The index shuttered at 42,313.00 points in the last trading session of the week after losing gains from the former half of the US bourse.
Interest rate effect
In an attempt to slow the economy sufficiently to bring inflation closer to its target of 2 per cent, the Fed had maintained its main interest rate at a two-decade high for more than a year.
Since inflation has significantly decreased from its peak two summers ago, the Fed has started lowering interest rates in an effort to support the faltering job market and avert a recession.
Employers in the United States have reduced hiring, and Friday's inflation report revealed that growth in consumer spending in the country in August fell short of forecasts by economists. This is significant since consumer spending drives the majority of the economy.
