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Dow hits 27,000 for first time ever



Federal Reserve Chairman Jerome Powell upgraded cut rate with his testimony before the Senate Banking Committee Wednesday and House Financial Services Committee Wednesday.

Dow ( INDU ) rose to a fresh all-time intraday high before pulling back slightly. It's up 0.4% or 111 points
The S&P 500 ( SPX ) is up to modest 0.1%. The S&P 500 is on track to climb to a fresh all-time high on Thursday, having just finished three points below the record it set on July 3. The Nasdaq Composite ( COMP ) which closed at a new all-time high of 8,203 points on Wednesday, slipped into negative territory.

The market shrugged off slightly higher-than-expected consumer price data, released earlier. Inflation rose 1

.6% year-over-year in June, as expected, but core inflation rose slightly to 2.1% versus the expected 2%. Rising inflation is well above the interest rate cut the market is hoping for.

Expectations for a quarter-percentage point cut at the Fed's July 31 meeting are 80%, with the remaining 20% ​​hoping for a 50 basis point decrease, according to the CME's FedWatch tool.

Remarks before the House on Wednesday, Powell noted that inflation continued to be below the central bank's 2% target.

Powell also cited uncertainties about trade and the global economy as Threats to US economic growth during his Wednesday testimony. The market reads his comments to mean that an interest rate cut could come at the end of the month.
On the trade front, President Donald Trump earlier tweeted that China is "letting us down in that they The United States and China agreed a ceasefire on raising tariffs on the sidelines of the G20 summit in Japan last month.

Powell is appearing before the Senate Banking Committee on Thursday morning, where his two-day bi-annual testimony will conclude.


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