Donald Trump has reacted sharply after the Dow Jones Industrial Average crossed the 50,000 mark for the first time in history, claiming credit for the rally through his tariff policies.
The Dow surged more than 1,200 points, or 2.5 percent, to close at 50,115.67, leading a strong rebound across US markets. The S&P 500 rose 2 percent, while the Nasdaq gained 2.25 percent, marking Wall Street’s best single-day performance since May last year.
The Dow Jones Industrial Average is one of the oldest and most widely followed stock market indices in the US, tracking the share prices of 30 large, well-known companies across key sectors of the economy. It is often used as a simple indicator of how the overall US stock market and corporate America are performing.
Posting on his social media platform Truth Social, Trump said the milestone came “three years ahead of schedule” and accused Democrats of risking an economic crash. He claimed that experts had earlier said reaching 50,000 by the end of his term would be a major achievement.
“The ‘experts’ said that if I hit 50,000 on the Dow by the end of my term, I would have done a great job. I hit it today, three years early,” Trump wrote, urging voters to remember the achievement during the midterm elections.
In a separate post, Trump said the rally was driven by US tariffs imposed on other countries, linking the stock market’s performance to what he called stronger national security. He also predicted that the Dow could reach 100,000 before the end of his term, a claim that drew mixed reactions from analysts.
Market participants, however, pointed to several broader factors behind Friday’s sharp rebound. Technology stocks led the gains after heavy losses earlier in the week, with chipmakers at the forefront. Nvidia jumped nearly 8 percent, while Broadcom rose more than 7 percent, as investors renewed bets on long-term spending related to artificial intelligence.
US markets had been under pressure earlier due to concerns over rising costs in AI development and fresh fears triggered by new automation tools unveiled by AI firms. Those worries led to sell-offs across technology and financial stocks before Friday’s bounce.
Another key driver was growing optimism that the US Federal Reserve may cut interest rates later this year. Data from the University of Michigan showed one-year inflation expectations falling to 3.5 percent, the lowest since January 2025, easing concerns over stubborn price pressures.
Improving consumer confidence and easing geopolitical tensions also supported sentiment. Reports of progress in US-Iran nuclear talks added to the positive mood, encouraging investors to buy into the market rebound.
While Trump highlighted tariffs as the main reason for the rally, analysts say a mix of easing inflation fears, rate cut hopes and renewed confidence in tech spending played a bigger role in pushing Wall Street to new highs.