Stock Market News, May 16, 2024: Dow Closes Below 40000 After Hitting Milestone

The Dow Jones Industrial Average crossed 40000 for the first time Thursday, then pulled back. Read the day's full markets roundup here.

The milestone, reached this morning, built on a run that earlier this week had pushed the three major U.S. indexes to new heights.

Stocks have rallied in May on renewed hopes that the Fed will cut interest rates this year. That optimism got another boost Wednesday after a highly anticipated inflation report showed price pressures eased slightly last month.

A jump in shares of Walmart and Boeing helped push the Dow above the 40000 mark during intraday trading. Read more about the Dow's climb here.

As of around 4 p.m. ET:

Stock indexes finished in the red, after wavering for much of the day. The Dow, S&P 500 and Nasdaq all retreated from their closing records notched Wednesday. Each is still up at least 5.1% for May.

Treasury yields edged up. The yield on the 10-year note settled at 4.376% to snap a three-day streak of declines.

Walmart shares rallied after the U.S.'s biggest retailer reported sales growth and raised its earnings outlook.

Chubb shares rose after Berkshire Hathaway's Warren Buffett revealed the insurer as his mystery stock pick.

Chinese property stocks surged on optimism about government plans to buy up excess housing. That helped boost regional stock indexes.

— By Caitlin McCabe and Gunjan Banerji