The Dow Jones Industrial Average rallied over 500 points on Tuesday to close above the 37,000 level for the first time in history. This marks a new record closing high for the index, which came shortly after it hit an all-time intraday high of 37,090.81 following the opening bell.
The rally, driven by better-than-expected earnings reports from tech companies, pushed the blue-chip index up 518 points, or 1.4%, to finish at 37,010.98. Financials, Healthcare, Consumer Staples and Industrials were among the biggest leders in the gains.
The technology sector, which makes up more than a quarter of the Dow, was responsible for most of the rally. Microsoft, Apple, and Intel were all higher on the day. Microsoft gained the most, up 2.7%, while Apple gained 1.8% and Intel rose 1.1%.
The Dow’s milestone is seen as a sign of market confidence in the U.S. economy, which is still rebounding from the unprecedented disruptions caused by the coronavirus pandemic. Since hitting a low of 19,898.10 on March 23rd of last year, the Dow has gained nearly 86%.
The recent rally has also been driven by optimism about a new stimulus package that President Joe Biden is expected to unveil this week. This, combined with a gradual recovery in consumer spending and an eventual return to normalcy, is expected to push the markets even higher in the near future.
Overall, Tuesday’s rally seemed to confirm that the Dow is back on track for another record-breaking year. With the markets showing no signs of slowing and an improving economic outlook, there’s no telling what the Dow is capable of hitting next.