Dow Hits Record High, Mixed Data Pressures Broader Market
The Dow Jones Industrial Average ended modestly higher on Aug 15 after touching a fresh intraday record, lifted by a sharp rally in UnitedHealth Group's shares, even as the S&P 500 and Nasdaq fell on mixed economic signals that clouded the Federal Reserve's (Fed) next policy move.
Reuters reported that UnitedHealth jumped nearly 12%, its biggest one-day gain since March 2020, after Berkshire Hathaway disclosed a new stake in the health insurer, while Scion Asset Management also boosted its holdings. The surge helped the healthcare sector log its best weekly performance since October 2022.
The Dow gained 34.86 points, or 0.08%, to close at 44,946.12. The S&P 500 slipped 0.29% to 6,449.80 and the Nasdaq Composite fell 0.40% to 21,622.98. For the week, the Dow rose 1.74%, the S&P 500 added 0.94% and the Nasdaq advanced 0.81%. The small-cap Russell 2000 outperformed with a 3.13% weekly gain.
Markets remain focused on the Fed, with traders betting on a 25-basis-point rate cut in September following signs of labour market weakness and muted tariff-driven inflation. However, Chicago Fed President Austan Goolsbee urged caution, noting uneven economic data. July retail sales grew in line with forecasts, but factory output and consumer sentiment weakened under tariff pressures.
Geopolitical developments also loomed large. Investors eyed a meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska, seen as pivotal for Ukraine peace prospects and the outlook for crude oil prices. Trump also signalled new tariffs on steel and semiconductors could be unveiled next week.
Trading volumes were lighter than average, with 16.3 billion shares changing hands across US exchanges versus a 20-session average of 18.2 billion.
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