Dow closes at record high, crossing 50,000 for first time

The Dow Jones Industrial Average closed above 50,000 for the first time on Friday, soaring more than 1,200 points to end the day at a record-high 50,137.

The blue-chip stock index jumped 2.47% to reach the historic number. A diverse mix of stocks fueled the surge as technology giant Nvidia Corp, industrial companies Caterpillar Inc. and 3M Co., and major banks Goldman Sachs Group and JPMorgan Chase were the five biggest Dow performers on Friday afternoon.

Wall Street ended the week on a positive note after a bleak couple of days that saw the S&P 500 on pace for its worst week since October and the Nasdaq Composite on track for its worst week since the April market plunge caused by President Trump’s tariffs. Friday’s jump significantly offset those declines and boosted investors’ confidence.

Friday’s white-hot rally comes after tech stocks had struggled earlier this week as investors dumped once-hot shares of companies. It also follows Nasdaq’s worst three-day slide in more than a year after the index lost more than $1.5 trillion in market value before rebounding.

The rally caught the attention of Mr. Trump.

“The Dow Jones Industrial Average just hit 50,000 for the first time in History. Congratulations America!” Mr. Trump posted on Truth Social.

The record-high close reflects Wall Street’s optimism about the U.S. economy at a time when voters seem more anxious about the cost of living and elevated inflation, which has proved difficult to tame.

U.S. consumer confidence has declined sharply since January, reaching its lowest level since 2014, according to a survey released last week by the Conference Board, a nonprofit consumer research group.

Consumer confidence cratered 9.7 points to 84.5 in January, falling below the lowest readings during the COVID-19 pandemic.

However, Wall Street seems prepared to brush aside such consumer jitters and other turmoil across the globe, including tensions between Washington and Brussels over Greenland and the capture of former Venezuelan President Nicolas Maduro.

The rally also appears to show that investors have confidence in Mr. Trump’s pick of Kevin Warsh to chair the Federal Reserve. Mr. Trump announced the pick last week to replace current Fed Chair Jerome Powell, whose term ends in May and frustrated the president with his refusal to cut interest rates.