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Dow ends above 40,000 mark for the first time

STORY: The Dow Jones industrial average closed above the 40,000 mark for the first time ever on Friday, while the other two major indexes took a break, after data this week supported expectations for interest rate cuts by the Federal Reserve.

The Dow added roughly a third of a percent. The S&P 500 edged up about one tenth of a percent, while the Nasdaq fell but only fractionally.

All three main indexes touched record highs in the previous session, following inflation data that boosted investor hopes for Fed rate cuts this year.

But the exuberance wore off Friday, says Anna Rathbun, Chief Investment Officer of CBIZ Investment Advisory Services.


"I think the market is taking a breather today. After the CPI and retail sales report, the bet that the Fed may be cutting rates sooner rather than later really drove the markets up both on the bond and the stock market side. They can't all keep going up forever. So today I think they're taking a break."

The stocks that moved included Reddit, which finished 10% higher after news it was partnering with OpenAI to bring its content to ChatGPT.

Shares of Advanced Micro Devices rose more than a percent after Microsoft said it plans to offer its cloud computing customers a platform of AMD artificial intelligence chips that will compete with those made by Nvidia.

Shares of that chipmaker, which reports quarterly results next week, fell 2%.

And after spiking in a meme-stocks frenzy earlier in the week, shares of GameStop sank nearly 20%.

The video game retailer said on Friday that it would sell up to 45 million shares to raise capital and also said it expects first-quarter net sales to drop from a year ago.