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Dow Jones Crosses 40,000 for First Time Amid Strong Earnings, Rate-Cut Bets, and 19th Record Close

May 16, 2024, 03:02 PM

The Dow Jones Industrial Average crossed the 40,000-point threshold for the first time on May 16, 2024. This historic milestone was driven by strong quarterly earnings, particularly from companies like Caterpillar, Goldman Sachs, and Walmart, and rising bets on interest-rate cuts by the Federal Reserve. The blue-chip index has more than doubled from its low during the early days of the pandemic in March 2020 and has set 19 record closes in 2024. The rally also saw gains in other major indices, with the S&P 500 and Nasdaq Composite hitting record highs. The milestone reflects growing investor confidence in the stock market's continued rally, bolstered by easing inflation.