Dow passes 40,000 for first time

The Dow Jones Industrial Average eclipsed 40,000 points for the first time in its history Thursday as Wall Street cheered slowing inflation and potential for lower interest rates.

The iconic stock index was up roughly 111 points shortly before 11 a.m. Thursday, reaching about 40,020 points. The Dow was created in 1895 and includes the 30 most prominent U.S. companies as determined by S&P Dow Jones Indicies.

The Dow is up 6 percent since the start of 2024 as investors eagerly await Federal Reserve rate cuts, which could add more fuel to the stock market. While the Fed has held off on rate cuts so far thanks to a combination of strong job gains and rising inflation, new data from the Labor Department showed price gains slowing for the first time since last year.

The Dow, Nasdaq composite and S&P 500 index all closed at record highs Wednesday.