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Rafael Nam

The Dow Jones hits 40,000 for the first time. What to know about this major milestone

Dow Dow Jones Inflation Economy Microsoft US Federal Reserve Interest Rates

Traders on the floor of the New York Stock Exchange in New York City on May 16, 2024, when the Dow hit 40,000 points for the first time ever. (Spencer Platt/Getty Images)

The Dow Jones Industrial Average surpassed 40,000 points on Thursday for the first time ever, signaling a strong endorsement of the health of the U.S. economy.

The trigger that drove the market to a historic high was new data released Wednesday showing annual inflation easing after three consecutive months of higher-than-expected reports.

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