Hopes for AI and rates nudge Wall Street to records, even as most stocks fall

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Most U.S. stocks fell, but hopes for coming cuts to interest rates and Wall Street’s continued frenzy around artificial-intelligence technology nudged indexes to more record highs

Most U.S. stocks slipped Thursday, but hopes for coming cuts to interest rates and Wall Street’s continued frenzy around artificial-intelligence technology nudged indexes to more records. The Standard & Poor's 500 added 0.2% to its all-time high set the day before, even though the majority of stocks within it weakened. The Nasdaq composite climbed 0.3% from its own record, thanks to gains for technology stocks, while the Dow Jones industrial average fell 0.2%.

Wealth Management. High interest rates have been dragging on some parts of the economy, particularly manufacturing. A separate report on Thursday showed more U.S. workers filed for unemployment benefits last week than economists expected, though the number is still low relative to history. The hope on Wall Street is that growth for the job market and economy continues to slow in order to take pressure off inflation, but not so much that it creates a deep recession.

’s Mukherjee said he’s expecting the U.S. economy’s growth to keep slowing as spending by lower-income households weakens under the strain of dwindling savings accounts. But he expects the economy to avoid a recession as spending continues by well-off households benefiting from fatter investment portfolios and home values, as well as by governments and corporations. “To me, the soft landing” for the economy where inflation eases without a deep recession “has already been achieved,” he said.

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