Dow Ends Mixed Day Just Shy of Record High as Inflation Data Tempers Gains

An early rally faded Friday, leaving the Dow Jones Industrial Average just short of its first record close of 2025. The Dow ended the day up 35 points, or 0.08%, while the S&P 500 fell 0.29% and the Nasdaq Composite dropped 0.4%.

The Dow began the day in record territory, surpassing its previous intraday high from December 4, but needed a 103-point gain to close at a record. It now sits just 68 points shy of that milestone. The index has risen about 20% since early April, buoyed by strong corporate earnings, hopes for a Federal Reserve interest rate cut, and investor enthusiasm around AI.

Market momentum slowed after the University of Michigan’s latest consumer sentiment survey showed a 5% drop in August, the first decline in four months, driven by inflation worries. The S&P 500 and Nasdaq remain ahead for the year, with 18 and 19 record closes respectively.

UnitedHealth shares surged 12% after Berkshire Hathaway disclosed a stake in the company, helping the Dow limit losses. However, earlier in the week, Producer Price Index data showed wholesale inflation rising at its fastest monthly pace in three years, sparking uncertainty about a September Fed rate cut.

Despite mixed signals, Wall Street has posted back-to-back weeks of gains, with volatility hitting its lowest level this year. Analysts say the market’s rally has been supported by corporate performance, tempered trade concerns, and cautious optimism about monetary policy.

Credit: CNN Newsource

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