AI RISE PAUSE, BUT CONSUMERS LIFT THE DOW! – Dow posts closing record high as broader AI-driven rally loses momentum
Rising healthcare and consumer stocks lifted the Dow Jones Industrial Average on Wednesday (May 27) to a record closing high, while the S&P 500 and the Nasdaq were steady, as investors took a pause from the AI-led rally while cautiously watching Middle East peace talks. Fractional gains were enough to push the S&P 500 index and Nasdaq to closing record highs for the second day in a row.
Banking stocks were down as shares of JPMorgan Chase slid 2.4% after CEO Jamie Dimon warned that expenses this year could be $1 billion higher than estimated.
U.S. Secretary of State Marco Rubio said there has been some progress in negotiations with Iran toward a deal. Yet President Donald Trump said the U.S. and Iran still have issues to resolve and Iran’s Fars News has said unresolved issues remain.
The Dow, which also hit closing highs on Friday and Thursday, was lifted by a rotation into healthcare and consumer stocks. Procter & Gamble shares rose 3.2%. UnitedHealth climbed 1.9%.
A pullback in chip stocks weighed on the tech-heavy Nasdaq.
The Dow Jones Industrial Average rose 182.60 points, or 0.36%, to 50,644.28, the S&P 500 gained 1.24 points, or 0.02%, to 7,520.36 and the Nasdaq Composite gained 18.55 points, or 0.07%, to 26,674.74.
Meanwhile, the S&P 500 energy index fell 1.5%, tracking a decline of as much as 5% in oil prices. Tech shares dropped after reaching an all-time high on Tuesday.
Markets will next look toward the personal consumption expenditures index data on Thursday. The Federal Reserve’s key inflation measure could provide fresh clues on the monetary policy path forward under new chair Kevin Warsh.
The S&P 500 posted 37 new 52-week highs and 8 new lows while the Nasdaq Composite recorded 169 new highs and 74 new lows.
Volume on U.S. exchanges was 18.81 billion shares, compared with the 18.78 billion average for the full session over the last 20 trading days.
