Dow Jones alone rises and hits a fresh record high

Most US stock indexes fell during Friday’s trading, but the Dow Jones rose alone to record its highest levels ever.

Data released today showed that retail sales rose by 0.5% month-on-month in July in line with expectations, indicating strong US consumption despite high tariffs.

Government data yesterday showed that the US producer price index rose by 0.9% month-on-month in July, exceeding analysts’ expectations for a 0.2% reading.

Similar US data released earlier this week showed the pace of growth in the US consumer price index holding steady at 2.7% in July, below expectations for a rise to 2.8%.

The core inflation index — which excludes volatile food and energy prices — rose to 3.1% in July, higher than expectations of 3% and up from 2.9% in June.

According to the FedWatch tool, investors now see a 99% probability that the Federal Reserve will cut interest rates by 25 basis points in September, compared with 94% yesterday and 57% a month ago.

Analysts also see a 61% probability of another 25-basis-point cut in October, up from 34% a month ago, and a 51% probability of a similar cut in December, up from 25% a month ago.

As for trading, by 16:55 GMT, the Dow Jones Industrial Average had risen 0.4% (165 points) to 45,075 after hitting an all-time high of 45,203 points. The broader S&P 500 fell 0.3% (18 points) to 6,450, while the Nasdaq Composite dropped 0.5% (103 points) to 21,507.