May 26, 2024

The Dow Jones Industrial Average crossed the 40,000 mark on Thursday — the first time in its 128-year history. The index rose 93 points, or about 0.2%, to hit 40,001 in mid-morning trading.

In March, the Dow came close to reaching the 40,000 milestone, but fell short by just a few points before slumping away from the mark.

It’s not just the Dow that’s rising. The S&P 500 and the Nasdaq hit all-time highs on Wednesday, closing the day with gains of 1.1% and 1.4%, respectively, to reach 5,308 and 16,742. Both indexes were up about 0.2% in mid-morning trading on Thursday.

Stocks have risen over the last couple days as inflation appears to cool. The Consumer Price Index, a key inflation gauge, rose 3.4% in April compared to a year earlier, according to Bureau of Labor Statistics data. Prices rose by 0.3% in April compared to a 0.4% increase in March. Core prices, which exclude food and energy, rose 3.6% annually, the lowest increase since April 2021.

Earlier this week, the Producer Price Index, a measure of wholesale inflation, increased more than expected in April at 0.5%. On a 12-month basis, the index increased 2.2%.

The latest CPI data has renewed investors’ hopes that the Federal Reserve will cut interest rates this year.

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