Dow Jones Hits Record High Despite Inflation and Jobless Claims Surge
The Dow Jones Industrial Average (DJIA) surged to an intraday record high of 46,128.45 on Thursday, defying concerns over rising inflation and a spike in initial jobless claims. August's Consumer Price Index (CPI) rose 0.4% month-over-month—the fastest pace since January—and 2.9% annually, both exceeding forecasts. Core CPI held steady at 0.3% monthly and 3.1% yearly, remaining stubbornly above the Fed's 2% target.
Initial jobless claims jumped to 263,000, the highest since October 2021, while continuing claims edged lower. "The CPI won’t deter the Fed from cutting rates next week," noted Sheema Shah of Principal Asset Management. Markets shrugged off the data, with risk assets buoyed by expectations of accommodative policy—a tailwind for cryptocurrencies.
