Dow Soars to Record High Amid Fed Rate Cut Expectations

The Dow aims for a record high, buoyed by optimism around a September interest rate cut and increased investments in UnitedHealth. Meanwhile, Nasdaq experiences slight dips due to weak Chinese demand for chip stocks. Investors focus on July retail sales and consumer confidence for economic health insights.

The blue-chip Dow is on the cusp of reaching an all-time high, bolstered by predictions of a September interest rate reduction. UnitedHealth's shares surged following Berkshire Hathaway's stake increase, while tech stocks experienced pressure due to China's diminished demand for chips.

UnitedHealth Group's stock soared by 11.5% in premarket trading after Warren Buffett's company expanded its investment in the health insurer. Despite challenges in the broader healthcare sector and a significant decline in UnitedHealth shares this year, the sector performed strongly this week, leading the S&P 500 index.

Analysts remain optimistic about a potential Federal Reserve interest rate cut in response to recent labor market weaknesses and tariff-related price pressures, despite signals of an impending consumer confidence report. However, chip stocks like Applied Materials and others saw declines due to forecasted weaker Chinese demand.

(With inputs from agencies.)