The Dow Jones industrial average closed above 5,000 for the first time ever Tuesday, surging in a performance symbolic of the stock market's yearlong rally.
The Dow rose 40.46 points to close at 5,023.55, simultaneously marking two additional milestones.It was the first time the Dow surpassed two thousand-point barriers in one year, having moved through 4,000 on Feb. 23. And it was the 60th time this year the Dow closed in record territory, besting the 59 record highs achieved in 1925 and 1964, the prior record for this century.
In early trading Wednesday, the Dow average was up 2.89 at 5,026.44.
Also setting records Tuesday were the Standard & Poor's 500 stock index, which gained 3.39 to 600.24, and the New York Stock Exchange composite index, which gained 1.31 to 320.23.
Strength in stocks like IBM, McDonald's and General Motors led the Dow's advance in a market whose 1995 gains have been fueled by strength in high-technology companies. With Tuesday's record, the Dow industrials have gained 31 percent this year.
The index of 30 of America's biggest corporations ended 1994 at 3,834.44. Its run at 5,000 began in earnest last week when it pushed beyond 4,900.
Investor confidence has been buoyed by a combination of moderate economic growth, low interest rates and little inflation that has helped boost the profits of U.S. corporations. Technology companies, such as makers of computers, software and semiconductor chips, have been particularly strong performers.
During the past few days, however, technology investors have been selling shares in the belief that the industry's rapid growth has peaked. But many technology issues began to come back Tuesday, helping spark the market's record performance.