Now, the Dow reached 40,000. A look at how it came to be.

The journey to current levels for the Dow has been a lengthy and convoluted one.

TFD – Discover the intriguing saga of the Dow Jones Industrial Average as it surges past 40,000, reflecting market resilience and economic growth.

A year ago, the Dow Jones Industrial Average appeared unthinkable. On Thursday, it achieved a significant milestone.

For the first time, the benchmark of 30 stocks broke above 40,000. The decision was made as investors rejoiced over the possibility that artificial intelligence would increase company earnings and that the Federal Reserve would lower interest rates later this year as inflation continued to decline from the epidemic highs.

The journey to current levels for the Dow has been a lengthy and convoluted one. This is a chart showing the Dow’s movement over the last 20,000 points.

Early in 2017, as investors started to factor in lower corporation taxes in the United States under former President Donald Trump, the Dow closed above 20,000 for the first time. By the end of that year, such anticipations were fulfilled, and by January 2018, the Dow had risen almost 25,000 points.

However, when the enthusiasm over tax cuts subsided and the Federal Reserve raised interest rates, trade tensions between the United States and China escalated, the Dow suffered in 2018. Over 5% of the year was lost by the Dow at the end.

The stock market bounced back in 2019 when the Fed decided against hiking interest rates. The Dow was getting close to 30,000 by early 2020; on February 12, 2020, it reached a high of 29,551.42.

The Covid-19 epidemic then sprang out. From its intraday peak in February 2020 to a low of 18,213.65 in March 2020, the Dow fell 38%.

In the ensuing months, the standard would rise as the Fed and legislators implemented previously unheard-of steps to boost the economy and the development of the Covid vaccine picked up speed. The Dow closed above 30,000 for the first time in November 2020.

The Dow broke above 35,000 in 2021, continuing the momentum from the Covid lows. The Dow fell to 28,660.51 in a bear market before it started to rise again, so the good times wouldn’t last for very long. After hitting that low, the Dow has increased by 40%.