US leading index Dow Jones breaks 40,000 mark

As of: May 16, 2024 5:29 p.m

The US stock market index Dow Jones has jumped above the 40,000 point mark for the first time. Good company data and speculation about an impending interest rate cut by the US Federal Reserve gave the leading index a tailwind.

Slight gains were enough for the Dow Jones to jump above the 40,000 point mark for the first time. After a cautious start, the US leading index managed to gain up to 0.2 percent and exceeded the symbolic number of points. The record rally on the US stock exchanges continued. Moderate gains in the Nasdaq 100 Index were also enough for records on the technology-heavy Nasdaq stock exchange.

On the one hand, positive quarterly figures from companies listed in the Dow are responsible for the soaring. During the current reporting season, companies are opening their books. On the other hand, there has been speculation for a long time that the US Federal Reserve is about to cut interest rates, which was recently reinforced by the new inflation data from the United States. This gives the Dow Jones another tailwind.

Faster and faster records

Historically, the records come faster and faster: while it took a good 100 years to jump over 10,000 points, the Dow Jones passed the 20,000 threshold less than 20 years later. The 30,000 and 40,000 points fell only about four years apart.

The Dow Jones Industrial Average debuted almost 130 years ago, on May 26, 1896, with twelve members: American Cotton Oil, American Sugar Refining, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric (GE), Laclede Gas Light, National Lead, North American Co., Tennessee Coal, Iron & Railroad, US Leather and US Rubber. Today it reflects the 30 largest US companies.

The index probably experienced its most infamous days at the end of October 1929: around “Black Friday,” the Dow fell by a total of 23 percent. It was the start of a global economic crisis that lasted for years and caused disruption all over the globe.

In March 1999, the Dow closed above 10,000 points for the first time. In 2017 the 20,000 mark will be exceeded, in 2020 the 30,000 points.

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