Dow closes above 38,000 for 1st time ever, setting record high

The S&P 500 also reached a record high on Monday.

The Dow Jones Industrial Average closed above 38,000 for the first time ever on Monday, setting a record high and capping a steady rise that stretches back to last week.

The S&P 500 also reached a record high, closing at about 4,850.

The major stock indexes kicked off the year with sluggish performance but began to turn upward in the middle of last week.

The recent surge follows a stellar showing for markets in 2023, driven in large part by optimism about the prospects for a "soft landing," in which inflation comes down to normal levels while the economy avoids a recession.

Investor enthusiasm about AI also helped drive returns.