Trump Outsmarted all the ‘Experts,’ as Dow Breaks 50K Despite Media Doom and Gloom [WATCH]

The Dow Jones Industrial Average closed above 50,000 points for the first time in its history on Friday, marking a major milestone for U.S. markets as stocks rebounded following a turbulent week driven by volatility in technology shares.

The blue-chip index crossed the 50,000 threshold shortly after 2 p.m. during Friday’s trading session and continued climbing through the afternoon. The Dow finished the day up 1,206.95 points, or 2.47%, closing at 50,115.67.

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Other major indexes also ended the session higher.

The S&P 500 gained 1.97%, while the Nasdaq Composite rose 2.18%, reversing losses from earlier in the week amid renewed investor confidence.

President Donald Trump reacted to the record-setting close with a series of posts on Truth Social Friday afternoon.

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“The Dow Jones Industrial Average just hit 50,000 for the first time in History. CONGRATULATIONS AMERICA!” Trump wrote.

In a separate post, the president pointed to earlier predictions from market analysts and contrasted them with the timing of Friday’s milestone.

“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, but I hit 50,000 today, three years ahead of schedule — Remember that for the Midterms, because the Democrats will CRASH the Economy!” Trump wrote.

Friday’s rally followed a difficult stretch for markets earlier in the week, particularly in technology stocks, as investors reassessed valuations tied to artificial intelligence.

The rebound was driven in part by strong gains in semiconductor stocks amid expectations of increased spending on AI-related infrastructure.

Shares of Nvidia, Advanced Micro Devices, and Broadcom all jumped more than 7% during the session.

Investors responded to projections that chipmakers would benefit from expanded investments in artificial intelligence data centers by major technology firms, including Amazon and Google parent company Alphabet.

Amazon’s stock, however, fell nearly 7% after the company announced plans to increase capital expenditures by more than 50% this year as it competes in the AI race.

The announcement followed a similar disclosure from Alphabet earlier in the week.

Despite Amazon’s decline, strength across much of the technology sector helped lift broader indexes.

The information technology sector led gains within the S&P 500, rising more than 3.7%. Industrial stocks also posted solid gains, with the sector’s index climbing nearly 2.7%.

Nine of the 11 S&P 500 sector indexes finished higher on the day.

The rally came after three consecutive days of losses for both the S&P 500 and Nasdaq, which had been pressured by concerns that enthusiasm surrounding artificial intelligence may have outpaced near-term fundamentals.

Investor sentiment received a boost from economic data released Friday morning. According to analysts, a report from the University of Michigan showed improving inflation expectations.

“Market sentiment improved after today’s positive report out of the University of Michigan,” said Jeffrey Roach, chief economist at LPL Financial. “Median 1-year inflation expectations hit the lowest since January 2025, providing some comfort for investors eager to see improving inflation metrics.”

While chipmakers surged, several software companies declined as investors weighed the potential impact of intensifying competition in the AI sector.

Some market participants also questioned whether valuations have become stretched amid rapid gains tied to artificial intelligence-related optimism.

Ross Mayfield, an investment strategy analyst at Baird, said volatility in AI-related stocks has been a consistent feature of the market.

“This trade has been volatile, and there have been selloffs at times, but I think there’s enough evidence that there’s real demand for AI products, real promise with what they can do and a necessity of a lot of spending to get there,” Mayfield said.

He added that periods of market weakness often attract buyers who remain confident in the long-term outlook.

“So, when there’s this kind of a sell-off, I think there’s a floor where there’s going to be a certain set of investors that steps in and starts buying these names,” Mayfield said.

Friday’s close above 50,000 places the Dow at a historic level as markets head into the final weeks of the quarter, with investors continuing to monitor inflation data, corporate earnings, and developments surrounding artificial intelligence spending.