The Dow Jones Industrial Average closed above the 40,000 mark on Friday for the first time in its 139-year history.

Boosted by optimism over potential rate cuts from the Federal Reserve, the blue-chip index rose 134 points to close at 40,003.59.

This historic milestone follows a report indicating easing inflation, which has fueled investor confidence.

Chief Market Strategist Ryan Detrick noted that despite last year’s recession fears, patient investors are now seeing significant rewards.

All major indexes closed higher for the week, with the S&P 500 up 0.1% and the Nasdaq Composite slightly lower.