The Dow Jones Industrial Average briefly traded above the 40,000 level for the first time on May 16 as U.S. markets rally to all-time highs.
While the index closed slightly below the 40,000 mark, analysts say crossing the threshold in mid-day trading is significant and could be a sign that the current bull market will continue.
The Dow, which is comprised of 30 leading blue-chip stocks, finished trading on May 16 at 39,869, a loss of 0.1%, after hitting an intraday high of 40,051.05 at 11 a.m. Eastern time.
Twenty-five years ago, the Dow crossed the 10,000 level for the first time on March 29, 1999.
The index, which is the oldest in America and dates to 1896, remains a key yard stick for measuring the performance of U.S. stocks. Its 30 components include blue-chip companies such as Apple (AAPL), McDonald’s (MCD) and Nike (NKE).
However, the S&P 500, which launched in 1957 and includes the 500 largest U.S. companies by market capitalization, is viewed on Wall Street as the best benchmark of the stock market.
The latest rise in the Dow has come relatively quickly. The index closed above the 30,000 level for the first time on Nov. 24, 2020.
The Dow’s move above 40,000 comes amid a broader rally that saw the S&P 500 and the technology-laden Nasdaq Composite index each close at record highs earlier this week.
