04:56 PM EDT, 05/17/2024 (MT Newswires) -- US equity indexes reached new record highs with the Dow Jones Industrial Average topping 40,000 for the first time as bets for an interest-rate cut before the US presidential election remained elevated after consumer price inflation eased.

* The Dow Jones Industrial Average closed at 40,003.59 on Friday versus 39,512.84 a week earlier. The S&P 500 ended at 5,303.27 versus 5,222.68, and the Nasdaq closed at 16,685.97, up from 16,340.87.

* Following three hotter-than-expected reports in January, February and March, the US seasonally adjusted consumer price index fell sequentially in April, according to the Bureau of Labor Statistics. Core CPI also declined from March. The year-over-year rate for headline and core CPI slowed.

* "We still expect more deceleration ahead, especially in 2H24, and we maintain our call for a first cut in September this year," Morgan Stanley economists, including Ellen Zentner, said in a note.

* US retail sales held roughly steady in April, below the gain anticipated in a survey compiled by Bloomberg and following the previous month's revised gain.

* US initial jobless claims fell sequentially to 222,000 in the week ended May 11 from an upwardly revised 232,000. The consensus estimate in a survey compiled by Bloomberg was 220,000.

* The probability of the Fed cutting rates by 25 basis points in September stood at almost 50%, the highest likelihood for the easing cycle to begin in any month this year, according to the CME Group's FedWatch Tool late Friday. The probability of the rates being left unchanged is 34%.

* The US 10-year and two-year Treasury yields fell from a week earlier.

* Technology and communication services were among the top gainers this week, reflecting investors' expectations that rate cuts are coming sooner rather than later.