Dow Jones

Key insight

The Dow has broken into uncharted all-time high territory above 54,000 on a five-session win streak, but new Fed Chair Kevin Warsh's hawkish lean and a rising services price index (70.3 twelve-month avg at highest since April 2023) mean rate-cut hopes remain a dead weight on the upside.

The Dow is posting its fifth consecutive positive session and scored a fresh all-time high in early Wednesday trading, having cleared the prior record at 54,085 set Tuesday, driven by strong ISM data and easing geopolitical tensions around the Strait of Hormuz.

Main risk

Fed Rate Hike Risk under Chair Kevin Warsh

Stubborn inflation has prompted market bets that the Fed under new Chair Warsh could hold or even hike rates in coming months, threatening the valuation expansion driving the Dow's record run above 54,000.