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Dow surpasses 40,000 points for the first time on positive economic news
Stocks continued to rise on Thursday, with the Dow surpassing 40,000 for the first time. Driven by lower-than-expected inflation and positive economic news, the Dow, Nasdaq and S&P 500 have made strong gains so far in 2024. File photo by John Angelillo/UPI
May 16 (UPI) — The Dow Jones Industrial Average surpassed 40,000 for the first time Thursday, extending a strong year of stock market gains, pushed higher in part after positive inflation news.
The Dow Jones reached 40,000.54 before retreating, but it was the first time he crossed that limit.
“This achievement It’s a testament to the powers of capital formation, innovation, earnings growth and economic resilience,” said Comerica Wealth Management Chief Investment Officer John Lynch.
Walmart helped boost the Dow with share prices rising more than 6%.
Shares rose about inflation news Wednesday, when the Labor Department reported, the consumer price index inflation rate was a seasonally adjusted 0.3% in April, keeping the annual inflation rate at 3.4%.
Inflation was lower than expected by Dow economists, an indication that inflation is normalizing and that the economy is in good shape.
In February, after the fifth consecutive week of good economic news, the S&P 500 exceeded 5,000 for the first time. Lower-than-expected inflation was a factor in the stock index’s performance.
The S&P’s gains were also largely driven by the performance of seven large companies called the “Magnificent Seven” – Nvidia, Microsoft, Meta, Amazon, Apple, Alphabet and Tesla.
The Dow, Nasdaq and S&P have all seen strong annual increases, with the Dow expected to rise 6% in 2024. The S&P and Nasdaq are up 11% this year.
As stocks rise, inflation is stabilizing.
A statement from President Joe Biden on Wednesday said he knows many families are still struggling, and while progress has been made on inflation, there is much more that needs to be done.