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The Dow just crossed 40,000 for the first time. The number is big but means little for your 401(k)

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The Dow just crossed 40,000 for the first time. The number is big but means little for your 401(k)

NEW YORK (AP) — The Dow Jones Industrial Average just topped 40,000 for the first time, the latest pop in what’s been a surprisingly good year for Wall Street.

But just like New Year’s represents an arbitrary point in time in the Earth’s revolution around the sun, such milestones for the Dow don’t mean that much inherently.

For one, with just 30 companies, the Dow represents a tiny slice of Corporate America. For another, almost no one’s 401(k) account sees its performance depend on the Dow, which has become more of a relic used for historical comparisons.

Here’s a look at what the Dow is, how it got here and how its use among investors is on the wane:

WHAT IS THE DOW?

It’s a measure of 30 established, well-known companies. These stocks are sometimes known as “blue chips,” which are supposed to be on the steadier and safer side of Wall Street.

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WHAT’S IN THE DOW?

Not just industrial companies like Caterpillar and Honeywell, despite the name.

The roster has changed many times since the Dow began in 1896 as the U.S. economy has transformed. Out, for example, was Standard Rope & Twine, and in recently have been big technology companies.

Apple, Intel and Microsoft are some of the newer-economy names currently in the Dow. The financial industry also has a healthy representation with American Express, Goldman Sachs, JPMorgan Chase and Travelers. So does health care with Amgen, Johnson & Johnson, Merck and UnitedHealth Group.

WHAT’S ALL THE HUBBUB NOW?

The Dow just crossed its latest 10,000 point threshold to top 40,000 briefly in midday trading on Thursday. It took about three and a half years to make the leap from 30,000 points, which it first crossed in November 2020.

It’s kept chugging mostly higher despite the worst inflation in decades, painfully high interest rates meant to get inflation under control and worries that high rates would make a recession inevitable for the U.S. economy.

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Companies are now in the midst of reporting their best profit growth in nearly two years, and the economy has managed to avoid a recession, at least so far.

IS THE DOW THE MAIN MEASURE OF WALL STREET?

No. The Dow represents only a narrow slice of the economy. Professional investors tend to look at broader measures of the market, such as the S&P 500 index, which has nearly 17 times the number of companies within it.

More than $11.2 trillion in investments were benchmarked to the S&P 500 at the end of 2019, according to estimates from S&P Dow Jones Indices. That’s 350 times more than the $32 billion benchmarked to the Dow Jones Industrial Average.

Investors’ 401(k) accounts are much more likely to include an S&P 500 index fund than anything tied to the Dow. The S&P 500 crossed above its own milestone Wednesday, topping 5,300 points for the first time.

That’s what more investors care about. Well, 100-point milestones matter for the S&P 500 as little as others, but the fact that the S&P 500 is higher than ever matters a lot.

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HOW DIFFERENT ARE THE DOW AND THE S&P 500?

Their performances have historically tracked relatively closely with each other, but the S&P 500 has been better recently. Its 29.3% rise for the last 12 months easily tops the 21.1% gain for the Dow.

That’s in part because the S&P 500 has more of an emphasis on Big Tech stocks, which were responsible for most of the S&P 500’s gains last year. Hopes for an easing of interest rates by the Federal Reserve and a frenzy around artificial-intelligence technology have pushed them to dizzying heights.

The Dow reflects none of the movements of such marquee stocks as Alphabet, Meta Platforms or Nvidia.

IS THAT IT?

No, the Dow and S&P 500 also take different approaches to measuring how an index should move.

The Dow gives more weight to stocks with higher price tags. That means stocks that add or subtract more dollars to their stock price push and pull it the most, such as UnitedHealth Group and its $523 stock price. A 1% move for that stock, which is about $5, packs a radically harder punch than a 1% move for Walmart, which is about 63 cents

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The S&P 500, meanwhile, gives more weight to stocks depending on their overall size. That means a 1% move for Walmart carries more weight than a 1% move for UnitedHealth Group because Walmart is a slightly bigger company by total market value.

SO WHY CARE ABOUT THE DOW?

Because it’s so old, it has a longer track record than other measures of the market.

For a while, a triple-digit move for the Dow also offered an easy shorthand way to show the stock market was having a big day. Now, though, it means much less. A 100 point swing for the Dow means a move of less than 0.3%.

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Drone Hits a Moscow High-Rise Days Before a Major Military Parade

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Drone Hits a Moscow High-Rise Days Before a Major Military Parade

A drone slammed into a high-rise apartment building a few miles from the Kremlin on Monday, a rare attack on Moscow that came as Ukraine has expanded its long-range strikes inside Russia.

The breach of air defenses in the Russian capital occurred five days before the annual Victory Day parade, a major event on Red Square marking the Soviet contribution to the defeat of Nazi Germany in World War II. Last week, Russia said that the parade would be significantly downsized, in an acknowledgment of the growing threat from Ukrainian drones.

In an effort to damage Russia’s oil-dependent economy, Ukraine has conducted several strikes in recent weeks on facilities deep inside Russian territory. Russia said on Sunday that Ukraine had attacked an important oil-exporting station on the Black Sea, and Ukraine said its forces had struck two ships in the Russian “shadow fleet” — vessels that surreptitiously transport oil in violation of sanctions — in another Black Sea port.

The drone strike on the Moscow apartment building took place in the early hours of Monday, the city’s mayor, Sergei S. Sobyanin, said in a statement. There were no casualties, he added. The Russian authorities did not directly attribute the attack to Ukraine, and Ukrainian officials did not immediately comment on the attack.

It was not clear whether the upscale apartment building, which soars 54 stories in a leafy, quiet neighborhood of low-rise buildings, was the intended target. The tower, the tallest in Moscow’s southwest, is about four miles from the city center, in an area named after Mosfilm, the Moscow film studio.

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Videos and photos from the scene showed part of one floor in the tower gutted by the drone hit. The drone’s evasion of air defenses was an embarrassment for the Kremlin. In recent days, city officials had reported several interceptions of Ukrainian drones in the Moscow suburbs.

Last week, President Vladimir V. Putin of Russia called for a cease-fire on May 9, the day of the Victory Day parade. President Volodymyr Zelensky of Ukraine rejected the offer, saying his country would welcome a lasting cease-fire, not a day off for Russia to celebrate itself.

On Monday, Russia’s Ministry of Defense said in a statement that Mr. Putin had declared a cease-fire for May 8 and 9, and that it hoped Ukraine would follow suit. Mr. Zelensky followed up hours later by announcing a cease-fire of his own — for May 6.

“We believe that human life is far more valuable than any anniversary ‘celebration,’” he said, adding that “it is time for Russian leaders to take real steps to end their war, especially since Russia’s Defense Ministry believes it cannot hold a parade in Moscow without Ukraine’s goodwill.”

Because of the threat of Ukrainian drones, Russia will hold the parade without heavy military equipment for the first time in nearly two decades. The Kremlin also canceled the participation of students from military secondary schools.

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The Russian Defense Ministry statement said that if Ukraine attacked Moscow during the parade on Saturday, it would retaliate with a “massive” missile strike on the center of Kyiv.

Mr. Putin has portrayed Russia’s war in Ukraine as an extension of the Soviet Union’s struggle in World War II, falsely asserting that the government in Kyiv has been taken over by Nazis.

In the past, the Victory Day parade has been an important foreign policy event for Russia, attracting heads of state including President George W. Bush and Xi Jinping, the Chinese leader. This year, Robert Fico, the Russia-friendly prime minister of Slovakia, is expected to be the main foreign dignitary.

Mr. Zelensky made a vague reference to the drone attack during a speech in Yerevan, the Armenian capital, on Monday. He said that Russia’s decision to scale back the May 9 parade showed its weakness.

“They cannot afford military equipment,” Mr. Zelensky said, “and they fear drones may buzz over Red Square.”

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Mr. Zelensky was in Armenia, a traditional ally of Russia, as it hosted a summit of leaders from a grouping known as the European Political Community. While Armenia is the site of a Russian military base, the country has been moving away from Moscow after the Kremlin did not come to its aid in a 2023 conflict with Azerbaijan.

Pro-war commentators in Russia have been seething over Armenia’s decision to welcome Mr. Zelensky and European leaders. Oleg Tsaryov, a former member of the Ukrainian Parliament who is now a pro-Kremlin blogger, asked in a post on the message service Telegram on Sunday what was stopping the 5,000 Russian troops in Armenia from arresting Mr. Zelensky on arrival.

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Explosion at a fireworks plant in China kills at least 21 people, injures dozens more: report

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Explosion at a fireworks plant in China kills at least 21 people, injures dozens more: report

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An explosion at a fireworks factory in a central Chinese province killed at least 21 people and injured 61 others, according to state media.

The blast happened at a fireworks plant in Liuyang, a city administered by Changsha in Hunan province, on Monday afternoon, China’s official news agency Xinhua reported.

The plant was operated by Liuyang Huasheng Fireworks Manufacturing and Display Co. in Liuyang, which is under the jurisdiction of Hunan’s capital, Changsha. Liuyang is home to a hub for fireworks manufacturing, state media China Daily reported.

MASSIVE FIRE DESTROYS UNIVERSITY OF SOUTH FLORIDA LABORATORY BUILDING: ‘TOTAL LOSS’

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Fire crews work to put out a fire after an explosion at a fireworks plant in Liuyang, Hunan Province of China. (Yang Huafeng/China News Service/VCG via Getty Images)

Aerial footage from state broadcaster CCTV showed white smoke still billowing on Tuesday in parts of the area, with facilities collapsed or damaged and debris scattered around.

Nearly 500 firefighters, rescuers and medical personnel responded to the scene, according to the South China Morning Post. People in danger zones were evacuated because of what authorities described as high risks posed by two black powder warehouses at the site.

An explosion at a fireworks factory in Liuyang, Hunan Province of China, killed at least 21 people and injured 61 others. (Yang Huafeng/China News Service/VCG via Getty Images)

Chinese President Xi Jinping called for “all-out efforts” to save injured victims and to search for people who remain unaccounted for, Xinhua reported. He called on authorities to probe the cause and pursue serious accountability. Xi also ordered effective risk screening and hazard control in key industries and the strengthening of public safety management.

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Xi often issues “important instructions” to local officials after deadly accidents and disasters, according to reports.

CREWS RESPOND TO MASSIVE EXPLOSIONS AT FIREWORKS FACILITY IN CALIFORNIA

Fire rescue forces carry out rescue operations after an explosion at a fireworks plant in Liuyang, Hunan Province of China. (Yang Huafeng/China News Service/VCG via Getty Images)

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Authorities launched an investigation into the cause of the blast, and unspecified “control measures” were taken against those in charge of the company.

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In an effort to avoid additional accidents during the search for survivors, rescuers adopted measures such as spraying and humidification to eliminate potential hazards. Robots were also used to assist with the search and rescue operation.

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Amnesty accuses Congolese rebel group of ‘extensive brutality’

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Amnesty accuses Congolese rebel group of ‘extensive brutality’

ISIS-linked group has tortured, killed and abducted civilians in the Democratic Republic of Congo, including children.

Amnesty International has accused a rebel group in eastern Democratic Republic of Congo (DRC) of mass war crimes and crimes against humanity.

In a damning new report published Monday, the rights group said the Allied Democratic Forces (ADF) was behind multiple cases of murder, abductions, forced labour and marriage, sexual abuse of women and girls, and the exploitation of children.

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The report is entitled “I’d Never Seen So Many Bodies: War Crimes by the Allied Democratic Forces in the eastern Democratic Republic of Congo”. 

The ADF has been involved in a years-long military campaign against central authorities in Kinshasa and pledged allegiance to ISIS/ISIL, also known as ISIS-Central Africa, in 2019.

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“Civilians in the eastern DRC have suffered extensive brutality at the hands of ADF fighters. They have been killed, abducted and tortured in a dehumanising campaign of abuse,” Agnès Callamard, Amnesty International’s secretary general, said.

“The ADF’s violence is contributing to an escalating humanitarian crisis… These abuses constitute war crimes which the world must not continue to ignore.”

The ADF largely operates in eastern DRC, near the Ugandan border, and has for years been in conflict with the government’s Armed Forces of the Democratic Republic of Congo (FARDC), along with the UN mission MONUSCO.

Repeated ADF attacks have led to mass displacement in parts of the DRC and limited the population’s access to healthcare, food and education.

A rebellion by the Rwanda-backed March 23 Movement, better known as M23, has worsened the situation for civilians in the region, while the ADF has taken advantage of international and domestic focus on these attacks to intensify its own military operations in eastern DRC.

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DRC soldiers search for ADF rebels near Beni in North-Kivu province [Kenny Katombe/Reuters]

Amnesty interviewed 71 people, including survivors of ADF attacks, as well as humanitarian workers and police officers, as part of its research in North Kivu province, eastern DRC, where the violence is most prominent.

In one notorious attack on Ntoyo village in September 2025, ADF fighters allegedly disguised themselves as mourners and used hammers, machetes, guns and axes to kill more than 60 people at a wake.

Another attack two months later in nearby Byambwe village saw at least 17 civilians killed, with four wards at a hospital set ablaze. A survivor told Amnesty that the fighters “shot anything that moved” at the church-run medical facility.

Forced marriage, child recruitment and abductions

Amnesty also spoke to five women and two girls who had been forced into marriages with ADF fighters, with interviewees indicating that members of the group were given “wives” as an incentive to fight the government. Under threat of death, victims were made to convert to Islam and suffered sexual and physical violence, with several women forced to watch the killings of others who had refused the group’s orders.

Amnesty documented 46 cases of abduction, including hostages being held for ransom, enduring torture, sexual slavery, forced labour, or they were murdered. Some were made to carry heavy loads for days, receiving beatings and given little food during their ordeal.

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“They taught us how to kill with weapons and with blades,” a woman who escaped after two years told Amnesty. “In the bush, you had to do what you were told. You cannot be weak.”

‘Stronger action to ensure protection of civilians’

Amnesty has called on authorities in the DRC to do more to protect civilians and urged the government to work with the UN and local communities to improve early warning systems and to quickly respond to any attacks.

Witnesses said that security forces sometimes arrived late at the scenes of ADF attacks or not at all. Peace and reintegration programmes were also essential to help survivors and communities to cope with their trauma.

“The Congolese government must take far stronger action to ensure the protection of civilians,” Callamard said, warning that disregarding the ADF threat would undermine security and human rights in the country.

“The international community must steadfastly support the Congolese state in improving efforts to protect civilians, ensuring justice, and providing long-term, sustainable support to victims and survivors.”

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