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Dow Jones Hits Record High as Inflation Eases

Investors react to cooling inflation and rate cut prospects, pushing the Dow above 40,000.

  • The Dow Jones Industrial Average rose over 400 points, exceeding 40,000 for the fourth time in its history.
  • Cooling inflation data has increased the likelihood of Federal Reserve rate cuts in September.
  • The S&P 500 and Nasdaq also saw gains, with all sectors of the S&P 500 posting increases.
  • Small-cap stocks continued their upward trend, with the Russell 2000 gaining for a second consecutive day.
  • Bond yields have fallen as market expectations for rate cuts solidify.
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