Dow crosses 40,000 for first time ever on positive economic news

May 16 (UPI) -- The Dow Jones Industrial index exceeded 40,000 for the first time Thursday, extending a strong year of stock market gains pushed higher in part after positive inflation news.

The Dow hit 40,000.54 before dropping back, but it was the first time it had crossed that threshold.

"This achievement is a testament to the powers of capital formation, innovation, profit growth, and economic resilience," said Comerica Wealth Management chief investment officer John Lynch .

Walmart helped push the Dow up with share prices up over 6%.

Stocks surged on inflation news Wednesday as the Labor Department reported the consumer price index inflation rate was a seasonally adjusted 0.3% in April maintaining th annual inflation rate at 3.4%.

Inflation came in lower than Dow economists expected, an indication that inflation is normalizing and the economy is in good shape.

In February after the fifth straight week of good economic news, the S&P 500 crossed 5,000 for the first time. Inflation coming in lower than expected was a factor in that stock index performance.

S&P gains were also largely driven by the performance of seven big companies called the "Magnificent Seven" -- Nvidia, Microsoft, Meta, Amazon, Apple, Alphabet and Tesla.

The Dow, Nasdaq and S&P have all posted strong year-to-year increases with the Dow up 6% in 2024. The S&P and Nasdaq have increased 11% this year.

As stocks push higher inflation is stabilizing.

A statement from President Joe Biden Wednesday said he knows many families are still struggling and although progress has been made on inflation there's a lot more that needs to be done.