Dow Jones tops 40k for the first time

The Dow Jones Industrial Average crossed the 40,000 mark for the first time in its 187-year history on the news of Wednesday’s promising inflation report before ending the day down 0.1%, at 39,869.4 points. The rally reflects an improving market health.

Despite recession fears, the index has more than doubled since March 2020.

The new record reflects investor optimism about the economy.
The Dow is viewed as the barometer for the US economy’s health. It is made of 30 blue-chip stocks, and when the index gains, it grabs the public’s attention as it implies that the economy is maybe doing better if the world’s biggest 30 companies are performing well.

Even the S&P 500 and Nasdaq witnessed record highs on Wednesday after the latest federal data revealed a drop in inflation for April.

But Americans are feeling the pinch of rising consumer prices. According to a survey by the University of Michigan, consumer sentiment hit its lowest point in six months due to price increases. Many Americans believe the economy is in recession, although it’s not the case, per recent CNN polls.