U S. stocks close at an all-time high just months after plunging from Trump trade worries

The previous day, May 15, 2024, the index had closed at 39,908 points, marking its highest closing value at that time. The Dow Jones Industrial Average rose to an all-time high on Friday, eclipsing the 40,000 mark for the fourth time in its 128-year history as shares surged across several industries, though the index fell short of its record close. The Dow Jones Industrial Average, also known as the Dow or DJIA, tracks 30 large, well-known companies that trade on the New York Stock Exchange and Nasdaq.

The 1960 Recession

The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of loans, was at 4.38%, up from 4.34% at the end of last week and at its highest level in two weeks. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, rose 0.4% to 97.54, after hitting its lowest level since early 2022 last week. US stocks rallied on Thursday, with the Dow Jones Industrial Average gaining more than 300 points and the S&P 500 clinching another record high. The yield on the 10-year Treasury rose to 4.27% from 4.24% late Thursday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, edged up to 3.74% from late Thursday. The threat of more severe tariffs continues to hang over the economy.

Seema Shah, chief global strategist at Principal Asset Management, said in an email that the June jobs report signals rate cuts in July are likely off the table. “The June jobs report is like a summer blockbuster — plenty of action and a surprise twist. Despite tariffs, DC drama and global headwinds, the US labor market just pulled off a better-than-expected performance,” Gina Bolvin, president of Bolvin Wealth Management Group, said in an email.

• Dow’s record-setting day follows inflation falling to its lowest point in a year, increasing the possibility of the Federal Reserve cutting interest rates.
• But this robust start was not indicative of extreme volatility the index would face as the year progressed.
• The 10-year Treasury yield rose five basis points, while the 2-year yield jumped nine basis points.

These funds track the DJIA through a similar composition and weighting of stocks. The largest single-day drop, percentage-wise, that the Dow has had occurred when the market crashed on Oct. 19, 1987, Black Monday. However, in points, the Dow’s worst day was March 16, 2020, when it fell 2,997.1 points in reaction to the pandemic-era adoption of lockdowns throughout the U.S. and the Federal Reserve slashing interest rates to near zero.

The new highs reflected biggest stock gainers of all time archives optimism that the Federal Reserve would continue to cut interest rates and that the incoming administration would promote business growth. Thursday was a shortened trading session, with the New York Stock Exchange and the Nasdaq closing at 1 p.m. On that day, it closed at 7,286.27, a 37.8% decline from its peak. No one knew if a new bull market had begun until the Dow hit a higher low on March 11, 2003, closing at 7,524.06.

Biggest S&P 500 Movers on Monday

Among other noteworthy tech sector movers, chip designer Arm Holdings (ARM) and chipmaker Marvell Technology (MRVL) each dropped about 5%, while ON Semiconductor (ON) fell 3.5%, as chip stocks were broadly lower. Data analytics software company Palantir (PLTR) climbed 3.5% to pace Nasdaq 100 advancers. The S&P 500 rose 0.5%, finishing above its previous record set in February. The key measure of Wall Street’s health fell nearly 20% from February 19 through April 8.

Dow Surges To All-Time High—But Falls Short Of Closing Record

• The bout of inflation that followed the COVID-19 pandemic led to another sharp sell-off in 2022.
• The Dow set two milestones in 2014 and set 39 closing records.
• CoreWeave (CRWV) said Monday it reached an agreement to acquire longtime data center partner Core Scientific (CORZ) in an all-stock deal worth roughly $9 billion.
• The market is constantly fluctuating, responding to various economic and geopolitical factors.
• The close was just shy of a previous record close of 40,003 set on May 17.

The Federal Reserve is monitoring the tariff situation with a big focus on inflation. The rate of inflation has been stubbornly sitting just above the central bank’s target of 2%. In a report Friday, its preferred gauge, the personal consumption expenditures index, rose to 2.3% in May. Treasury yields jumped higher as investors dialed back expectations for future rate cuts from the Federal Reserve. The 10-year yield rose to 4.34% and the 30-year yield rose to 4.86%.

Traders were confident in a business-friendly Republican president. The Dow Jones Industrial Average (the Dow) is an index of the 30 top-performing U.S. companies. The most recent all-time-high record (as of this writing) was on Jan. 4, 2022, when it closed at 36,799.65. Tesla shares have lost more than a quarter of their value so far this year.

After recovering from its Great Depression level, the Dow continued to be affected by several recessionary periods and crises leading up to the 2009 downturn. That correction was more than 16% lower than its all-time high set in May of the same year, putting the index into a correction but not a bear market. Investors worried that China’s yuan devaluation and the uncertainty over the Fed’s rate increase would push the index further downward. A November streak occurred after Donald Trump’s presidential win on Nov. 8.

Record Highs Set in 2015

The post came just weeks after the Tesla CEO said he would refocus on his companies following a backlash to his role leading the Trump administration’s cost-cutting Department of Government Efficiency, or DOGE. Datadog shares lost more than half their value between December and April as uncertainty over the Trump administration’s tariffs and downbeat earnings projections from the compamy pummeled the stock. However, they have nearly doubled from their 2025 low and are up about 9% since the start of the year, boosted by renewed investor appetite for cloud and AI stocks. The stock was down 0.4% at $154.50 in recent trading, after surging 15% on Thursday, ahead of the July 4th break.

Wall Street was also monitoring developments on Capitol Hill as lawmakers in the House try to pass Trump’s “One Big, Beautiful Bill.” And investors were also keeping an eye out for developments on the trade front. Traders now expect just a 4.7% chance the Fed cuts rates in July, down from a 23.8% chance yesterday, according to the CME FedWatch Tool. The breakdown of job growth showed a less rosy picture, with the private sector showing signs of weakness, according to Jim Baird, chief investment officer at Plante Moran Financial Advisors. When a company undergoes significant changes, such as a merger, acquisition, or substantial shifts in its business model, or when there’s a need to better represent the current state of the economic sectors, adjustments are made. These changes are not done often to ensure the index’s stability and continuity. The Dow tracks 30 large, publicly owned blue-chip companies trading on the New York Stock Exchange and the Nasdaq.

Stocks in Europe were mostly higher, while stocks in Asia finished mixed. Stocks had jumped higher in the morning after new data showed the economy added 147,000 jobs in June, exceeding expectations. Provides fast-tracked access to live funds for confident and experienced traders. While the 40,000 milestone is attention-grabbing, the number itself means little to investors. These big, round numbers don’t mean much, but they do serve as a reminder that over time stock investments can pay off. The S&P 500 has returned about 10.6% annually for the past 100 years, according to analysis from Trade That Swing.

The most recent record closing occurred on Jan. 4, when the index closed at 36,799.65, blowing past the all-time high closing of 36,585.06 it had just a day before. The move to new records for stocks on Thursday signals a key shift among investors, who have often digested strong economic data as a negative development, as it lowers the chances for a rate cut. In conclusion, the DJIA reached its all-time high of 40,051.05 points in May 2024. This historic peak came after years of growth, economic recovery, and optimism in the market. By understanding the events and factors behind this achievement, we can better appreciate the significance of this record-breaking moment in stock market history. Conversely, an encouraging drop in inflation reported earlier this week helped to fuel this latest rally.

Consumer prices also fell month-over-month for the first time since 2020. The market responded positively to wholesale prices increasing 0.2% last month, higher than projections of 0.1%, according to FactSet. The S&P 500 index and Nasdaq have similarly peaked at record highs this year as technology stocks like Nvidia have swelled—though Nvidia is not a Dow Jones component. The strong jobs report also spurred a spike in Treasury yields and reduced expectations for the Federal Reserve to cut interest rates soon.

It beat its January high, rising to 9,093.24 by the close of the day. The Senate reintroduced the bailout as the Troubled Asset Relief Program on Oct. 3. While the relative strength index confirms bullish price momentum, it also flashes extreme overbought conditions, potentially raising the possibility of short-term profit-taking. Shares of Molina were down more than 1% in early-afternoon trading on Monday. Baxter International on Monday named Andrew Hider, chief executive of Canadian automation solutions firm ATS Corp., its new CEO. Even with today’s decline, Oracle shares are up roughly 40% this year.