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Why the Dow Jones Industrial Average Just Hit a New Record High

Published 17/05/2024, 05:37 am
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The Dow Jones Industrial Average (DJIA) reached a historic milestone on Wednesday, surpassing the 40,000 mark for the first time in its nearly 128-year history. The blue-chip index, along with the S&P 500 and Nasdaq, closed at record highs, marking a significant day for the U.S. stock market.

At the time of writing, the DJIA has touched an intraday high of 40,004.23, while the S&P 500 and Nasdaq reached 5,319.63 and 16,778.31, respectively. This achievement comes just over three years after the Dow first closed above 30,000 in November 2020 and less than three months after it surpassed 39,000 in February 2024.

Dow Jones Rises to Record High at 40,004.23

The DJIA’s recent surge can be attributed to several factors, including optimism about potential interest rate cuts by the Federal Reserve this year and a slightly easing inflation report. Strong performances from major companies like Walmart (NYSE:WMT) and Boeing (NYSE:BA) also contributed to the index’s rise above 40,000. Walmart reported impressive sales growth and raised its earnings outlook, leading to a boost in its shares.

Additionally, Chubb (NYSE:CB) shares rose after Warren Buffett revealed the company as his mystery stock pick.

Positive sentiment in Chinese property stocks, driven by government plans to purchase excess housing, also helped lift regional stock indexes. Furthermore, strong earnings reports from companies such as Nvidia (NASDAQ:NVDA), Dell Technologies (NYSE:DELL), and Cisco (NASDAQ:CSCO) played a role in the ongoing market rally.

What is the Dow Jones?

The Dow Jones Industrial Average is a stock market index that tracks the performance of 30 large, publicly-owned companies listed on the New York Stock Exchange (NYSE) and the NASDAQ. Established on May 26, 1896, the index closed at 40.94 points. It is one of the world’s oldest and most widely followed equity indices.

The DJIA has reached significant milestones throughout its history. In March 1999, the index reached 10,000 points, taking nearly 103 years.

Since then, the pace of growth has accelerated, with the Dow hitting 20,000 in January 2017, 30,000 in November 2020, and now 40,000 in May 2024.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

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