A strong performance brought the 30-stock average as high as 7,040.91 before closing up 60.81 at 7,022.44. The index crossed 6,000 only four months ago and its current historic lift followed a 104-point surge yesterday, its fifth-biggest gain in points ever, and a 52-point run Tuesday.
People on the floor of the New York Stock Exchange greeted the 7,000 mark with cheers and applause. At the closing bell, some could be seen holding up seven fingers to mark the event.
Passing through 1,000-point barriers used to take years, if not decades. But as the market roared ahead, it required less of a percentage leap.
For example, the 25 percent rise from 4,000 to 5,000 took nine months and the jump from 5,000 to 6,000 - a 20 percent advance - required 11 months. The latest 1,000-point advance was just a 17 percent gain.
Driving prices has been excitement among investors, who have continued to pour money into the market, about strong corporate earnings and data suggesting the economy is not growing too fast. That could trigger inflation, which would likely prompt the Federal Reserve to raise interest rates.
In fact, the Fed decided just two weeks ago against such a move. Higher rates are designed to slow the economy, which would tend to reduce corporate profits. Profits, of course, are a primary driver of stock prices.
Also critical to the market's run, however, is overall psychology. Investors seem convinced the stock market can go nowhere but up, despite several stumbles so far this year.
"Unbridled greed and lust," said Stephen S. Roach, chief economist at Morgan Stanley & Co.
"There is a conviction that we are in a perfect world, irrespective of any growth rate, where we will never again have any problem with inflation, Fed policy and interest rates," he said.
Roach is somewhat skeptical that the good times will continue to roll without pause. Many believe the economy's growth will eventually generate inflation and force the Fed to act.
For now, though, investors seem to be ignoring that likelihood. Yesterday, a trade group reported that investors poured $27 billion into stock and bond mutual funds last month, with the vast majority of that going into stock market.
On Wall Street today, advancers led decliners by more than a 2-to-1 margin on the New York Stock Exchange, with 1,739 up, 843 down and 764 unchanged. NYSE volume totaled 584.37 million shares, vs. 563.56 million yesterday.
Other market indicators set records as well today.
The Standard & Poor's 500-stock index and the NYSE composite index surged beyond all-time highs reached yesterday.
The S&P 500, which yesterday broke above the 800-mark for the first time, rose 9.06 to 811.83. The NYSE composite, which is also dominated by larger companies, rose 4.54 to 424.42.
The technology-heavy Nasdaq composite index - which yesterday surged 27 points, or about 2 percent - rose 11.74 to 1,370.70, but remained about 17 points shy of a new high. The American Stock Exchange composite index rose 2.30 to 595.40.
The day's activity represents the continuation of the powerful bull market that has seen the Dow roar ahead with only minor pauses for more than 6 years. The average first hit 4,000 less than two years ago and the record today represents its 12th new high this year.
So far in 1997, the Dow has advanced almost 9 percent.
The only major economic news released during today's rally was word from the government that retail sales rose 0.6 percent in January. That data tended to fall in line with the scenario of modest economic growth and low inflation.