The S&P 500 and Dow Jones Industrial Average both managed to end slightly higher on Tuesday, extending their recent winning streaks fueled by expectations that the Federal Reserve will cut interest rates this year. This marked the S&P 500’s fourth consecutive higher close, its best run since March, while the Dow has gained for five sessions in a row, its longest positive run since December 2023. Despite the overall positive trend, Walt Disney’s stock slumped 9.5%, its biggest percentage fall since November 2022, due to a surprise profit in its streaming division overshadowed by a drop in its traditional TV business and weaker box office performance.
The markets have been buoyed by last week’s weaker-than-expected labor market report, fueling expectations of a U.S. central bank rate cut. The Nasdaq Composite, which also benefited from the optimism, slipped slightly in afternoon trading, closing lower and snapping its three-day winning run. Investors now await major economic data, including the Producer Price Index and Consumer Price Index, scheduled for May 14 and May 15, respectively.