Stocks remain steady as Dow prepares for another attempt at reaching 40,000

US stocks regrouped on Friday as Wall Street set up another bid to reach bullish milestones, with the Dow Jones Industrial Average holding steady after touching the key 40,000 level for the first time. The S&P 500 and Nasdaq Composite also saw gains, with all gauges on track for weekly wins.

The optimism in the stock market was tempered by comments from Fed officials indicating that rates are likely to remain high for a while, dampening hopes for a September rate cut. This comes after encouraging inflation data had raised expectations for a cut.

With a light economic and corporate calendar on Friday, the focus shifted to appearances by Fed officials Mary Daly and Christopher Waller. Investors will be listening closely for any deviation from the Fed’s stance on waiting for clear signs of cooling inflation before making any moves.

In individual stock movements, Reddit shares surged 15% after the open following news of a partnership with OpenAI. On the other hand, GameStop shares plummeted over 20% as the company expects a drop in first-quarter sales due to a shift to online shopping.

Overall, the stock market remains poised for further gains, with the Dow eyeing the 40,000 mark and the S&P 500 and Nasdaq aiming for fresh records. Investors will be closely monitoring the Fed’s stance on interest rates and any developments in the market-moving stocks.