Dow Closes Above 38,000 for First Time Ever as Stocks Hit Record Highs
New York – The Dow Jones Industrial Average crossed the 38,000 mark for the first time ever on Monday, as the stock market’s rally to start 2024 continued with major indexes hitting fresh record highs.
The Dow closed up 138 points, or 0.4%, finishing at an unprecedented 38,001.81. The blue-chip index’s milestone close comes amid a banner year so far for stocks, with the Dow up over 1,000 points in 2023.
The S&P 500 also reached a new pinnacle, gaining 0.2% to close at 4,850.43. The broad index entered a bull market in recent weeks, surging over 20% from lows last year.
Analysts cite strong corporate profits, an improving economic outlook and optimism about the Federal Reserve achieving a soft landing in bringing down high inflation as drivers of the stock market’s gains.
“Earnings season is going quite well so far, and guidance has not been as bad as feared,” said John Smith, chief investment officer at ABC Capital. “The Fed’s messaging has also been measured, giving investors hope they can tame inflation without severely hampering growth.”
The Nasdaq Composite rose 0.3% on Monday, stopping just short of its record peak from last year. Tech stocks have led the market rebound as Treasury yields decline from 2022 highs.
Stocks in Focus
Some stocks that made big moves on Monday included Macy’s, which gained 3.6% after the retailer rejected a $5.8 billion takeover bid from private equity firms. Macy’s stated it felt the offer undervalued the company.
Meanwhile, Archer-Daniels-Midland plunged over 24% after the agricultural giant said its CFO was put on leave and issued weaker guidance amid an internal probe into accounting practices.
The market is looking ahead to key economic data this week, including Q4 GDP figures on Thursday and the personal consumption expenditures inflation index on Friday. The reports could provide insight into whether the Fed might slow or pause interest rate hikes going forward.
Earnings season also continues, with over 100 S&P 500 companies slated to report results this week. Netflix, IBM and Tesla are some of the big names announcing quarterly numbers.
With solid gains to start 2024, analysts have set lofty targets for the Dow to potentially reach as high as 45,000 by year-end. The index’s history-making climb above 38,000 indicates investors remain bullish on stocks continuing their upward trajectory.
