At Wall Street history is being made by Dow Jones, as it passed 40,000 points for the first time in its history (it reached 40,000.54 points).

“This achievement is a testament to the strengths of earnings growth and financial resilience,” said John Lynch, chief investment officer of Comerica Wealth Management. His course Dow towards 40,000 units is not considered a coincidence, since the expectations of a reduction in interest rates and the excitement around artificial intelligence which is expected to give a boost to corporate profits, strengthen the investment climate.

The Dow Jones industrial average, which measures the performance of stocks of 30 major publicly traded companies, closed above 20,000 for the first time in early 2017 as investors began to price in then-President Donald Trump’s cut in corporate taxes Trump. Their expectations paid off towards the end of the year, driving the Dow above 25,000 points in January 2018.

However, throughout 2018 the Dow struggled as excitement around lower taxes faded, tensions over the US-China trade landscape began to rise and the Fed began raising interest rates. This resulted in the Dow ending the year with losses of more than 5%.

The following year, the index rebounded as the Fed began to back away from raising interest rates. By early 2020, the Dow hovered around 30,000 (it reached a high of 29,551.42 on February 12, 2020.

And then came the Covid-19 pandemic. The Dow intraday just tumbled from record lows of 18,213.65 in March 2020, losing 38% of its value.

However, the follow-up was positive. Progress on coronavirus vaccines has accelerated at a rapid pace, with the government taking unprecedented measures to support the economy. In November, the index closed above the 30,000 mark for the first time.

The positive momentum continued throughout 2021, with the Dow also breaking the 35,000-point milestone. That good period, however, did not last long as the bear market sent the index to 28,660.51 units. And then it’s back on the upward trajectory, recording an explosive rise of 40% to date.