The Dow narrowly missed finishing at its first record high of the year on Friday as an early rise waned.
Friday's US stock market was erratic. The Dow gained 35 points, or 0.08%, at the close. In the meantime, the tech-heavy Nasdaq Composite sank 0.4% and the S&P 500 fell 0.29%.
After breaking its previous intraday record high set on December 4, the Dow had opened in record territory before varying. For the Dow to formally close at a record high, it had to gain about 103 points, or 0.23%, during the day.
To close at an all-time high, the Dow now has to add about 68 points, or 0.15%.
Despite indications of underlying economic volatility, Wall Street has remained optimistic; yet, the market's enthusiasm waned towards the conclusion of the week. Even Nevertheless, the three main market indices reported consecutive weeks of gains.
The University of Michigan's most recent consumer poll revealed that mood dropped 5% in August and for the first time in four months as a result of concerns about inflation, which put pressure on stocks Friday morning.
As shares of UnitedHealth (UNH), a major component of the Dow, increased 12%, the Dow attempted to rise higher. Following the closing bell, Berkshire Hathaway's (BRK.B) shares rose after the company disclosed a stake in the health care behemoth on Thursday afternoon. This year, UnitedHealth's stock has dropped 40%.
The Dow is still pursuing its first closing record milestone, despite the S&P 500 and Nasdaq setting 18 and 19 record highs this year, respectively. In recent weeks, equities have increased due to expectations of a rate drop by the Federal Reserve next month.
Even still, the Dow has recovered remarkably, rising over 20% since plunging to a low in early April.
The hunt is still ongoing.
Despite indications that the trade policy is helping some prices, investors have been trying to ignore worries about President Donald Trump's tariffs, and in recent weeks, the Dow has flirted with closing at a record high.
A robust corporate earnings season and unwavering investor excitement for AI have supported the market.
The Consumer Price Index data for July showed headline annual inflation increased as expected, which calmed Wall Street and strengthened claims that the Fed will lower interest rates in September. As a result, stocks surged earlier this week.
Over the course of Tuesday and Wednesday, the Dow rose 947 points, or 2.15%. The Nasdaq and S&P 500 both reached consecutive all-time highs.
According to a note released by Deutsche Bank analysts on Tuesday, "investors were afraid that an even hotter number would eliminate the possibility of a September rate cut altogether, especially if the tariff impact became more obvious." "There was relief when the CPI was largely as anticipated."
However, the Producer Price Index data for July revealed that wholesale inflation increased at its quickest monthly rate in three years, which halted Thursday's stock market rise.
