The prime index hovered above the 40,000 brink at a stage on Thursday, 16 May 2024, but ended that day lower. Hopes of rate cuts fuelled bullish investor actions and enabled the Dow Jones’s gallop towards this all-time high.

According to CNN, the latest report from the US Bureau of Labour Statistics indicated a decrease in inflation, which may spur the US Federal Reserve to cut interest rates. The media outlet cited a note from Ryan Detrick, chief market strategist at Carson Group, which read:

40,000 is a great milestone, but end of the day there isn’t much difference between 39,999 and 40k. Still, this is a great reminder of how far we’ve come. Think about how many people were talking about recessions and bear markets all of last year. Now we are once again back to new highs.

Yahoo Finance indicated that the Dow Jones record performance follows just 874 trading days after the index closed above 30,000 for the first time. Data showed that Goldman Sachs (GS), Microsoft (MSFT) and UnitedHealth (UNH) led the blue-chip index’s charge from 30k to 40k. For the week ending 17 May 2024, the Dow Jones gained 1.2%.

The S&P 500 and Nasdaq also recorded their longest rallies since February 2024. Analysts predict a continued bullish scope for investors, and Keith Lerner, co-chief investment strategist at Truist, described the movements as a “healthy sign and typical characteristic of a bull market”.

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