Federal Reserve announcements

Dow Jones Crosses 40,000 for First Time, Driven by Earnings, Rate-Cut Bets, and 18 Record Closes

May 16, 2024, 02:55 PM

The Dow Jones Industrial Average crossed the 40,000-point mark for the first time on May 16, 2024. This milestone was driven by strong quarterly earnings and rising bets on interest-rate cuts by the Federal Reserve. The index has more than doubled from its low during the early days of the pandemic in March 2020. The Dow's rapid ascent to 40,000 marks its fastest 10,000-point climb, with 18 record closes in 2024. Contributing to this surge were gains in stocks such as Caterpillar and Goldman Sachs. The S&P 500 and Nasdaq Composite also reached record highs, reflecting a broader stock market rally.