The Dow Jones Industrial Average closed above 40,000 for the first time, and all three major US stock indexes posted strong gains for the week. ― Reuters picNEW YORK, May 18 — A world stock index rose for a seventh straight session and US Treasury yields also gained yesterday as investors tried to assess the timing of potential interest rate cuts by the Federal Reserve this year.
Data from earlier this week showing softening consumer prices in April boosted expectations that the US central bank will be able to cut rates twice this year, beginning in September.Much depends, however, on what happens with price pressures in the coming months and Fed officials have hinted US rates may not fall anytime soon.
For the week, the Dow gained 1.2 per cent, the S&P 500 rose 1.5 per cent and the Nasdaq climbed 2.1 per cent. The STOXX 600 index fell 0.13 per cent. A report showed European Central Bank board member Isabel Schnabel advocated caution about further interest rate cuts after a likely first one in June.