Dow Jones average exceeds 40,000.
It looks like it will be hot again starting tomorrow.
This is Kotsumekko, who has already used the air conditioner despite high electricity costs, hello.
Well, another set of news has caught my eye today!
(Quoted below from Yahoo News ↓)
Dow Jones Industrial Average surpasses 40,000 for the first time in history, 3.5 years since crossing 30,000
On May 16, U.S. time, the Dow Jones Industrial Average surged to a fresh high, marking a new milestone in the U.S. stock market, which has been buoyant throughout 2024.
At 10:30 a.m. Eastern Time on May 16, the Dow surpassed 40,000 for the first time in its 128-year history, rising 0.4% from the previous day to record an all-time high of 40,046.21 (Note: the closing price that day was 39,869.38).
The Dow is a stock index comprising 30 U.S.-listed companies across various sectors, and it has risen about 6% since the start of this year and about 23% from its October last year low.
Leading the Dow higher on the day was Walmart in the retail sector, whose stock price rose 7% after its first-quarter earnings report, hitting an all-time high.
From the start of the Dow’s calculation to breaking through 10,000 in March 1999 during the dot-com boom took 103 years, it took 18 more years to surpass 20,000 in January 2017, about 3.5 years to exceed 30,000 in November 2020, and another 3.5 years to break through 40,000 this time.
Unlike the other two representative U.S. stock indices, the S&P 500 and the Nasdaq Composite, the Dow has a narrower set of component companies and is weighted by price rather than market capitalization. The S&P 500 and Nasdaq indices have already reached new all-time highs.
The 3.5 years from the Dow’s first crossing of 30,000 to surpassing 40,000 felt like a roller coaster ride. The stock market slump in 2022 was driven by concerns about rising interest rates caused by high inflation. Higher interest rates typically push investors toward higher-yield bonds and raise borrowing costs, which can depress corporate earnings and push stock prices down.
However, current interest rates are at a 20-year high, but due to the AI boom and expectations that rates will be cut in the future, the price-earnings ratios (PER) of various stocks have risen, and stock prices have continued to climb.
Chris Zaccarelli, Chief Investment Officer of the Independent Advisor Alliance, commented that the Dow’s crossing of 40,000 would be a “great psychological boost” for investors.
That’s all.
In the morning news,
“Will persistent inflation truly subside?”
“What will happen with the Fed’s rate cuts?”
I wonder how inflation will turn out.
(Please purchase from here ↓)
× ![]()