Dow jumps 790 points on Caterpillar strength, closes in on 50,000; S&P 500 crosses 7,200 for first time; U.S. debt higher than GDP for first time since World War II

The Dow Jones Industrial Average jumped more than 790 points and the S&P 500 and Nasdaq hit new all-time record highs Thursday, while the national debt now outpaces U.S. GDP, according to new economic data.

U.S. GDP (gross domestic product) came in at $31.22 trillion for the first quarter, according to the U.S. Bureau of Economic Analysis and the Committee for a Responsible Budget (CFRB).

The latter watchdog group said the national debt stood at $31.27 trillion as of the end of the first quarter.

That puts the ratio of U.S. debt to U.S. GDP at 100.2%.

It’s the first time that debt ratio has surpassed 100% since 1946, right after World War II.

“With debt now above 100% of GDP, it’s only a matter of time until we pass the all-time record of 106% reached in the immediate aftermath of World War II. This time the borrowing isn’t borne from a seismic global conflict, but rather a total bipartisan abdication of making hard choices,” CFRB said in a statement Thursday.

The group said federal debt pushes up interest rates and interest costs and that debt-to-GDP ratios could get even higher.

“And without corrective action, rising debt could spark a devastating fiscal crisis,” the fiscal watchdog group said.

U.S. military, entitlement and other domestic spending along with tax policies (including recent cuts) help drive debt loads.

First quarter 2026 GDP came in at 2% on Thursday. That was up from 0.5% in Q4 2025 but lower than economists’ and Wall Street analysts’ expectations of 2.2% growth.

High oil and gasoline prices stemming from the Iran war and blockades of the Strait of Hormuz have inflationary and supply chain pressures globally and in the U.S.

President Donald Trump continues to impose a naval blockade on Iran aimed at strangling the Islamic regime and prompting Tehran to retreat from its nuclear ambitions.

The Dow Jones Industrial Average closed up more than 790 points fueled by strong earnings and upward guidance from Caterpillar Inc. The Dow closed at more than 49,650 points, according to CNBC.

Caterpillar (NYSE: CAT) reported a 22% jump in sales and revenue and raised its outlook, boosting Wall Street’s confidence in the overall U.S. economy.

“Sales and revenues for the first quarter of 2026 were $17.4 billion, a 22% increase compared with $14.2 billion in the first quarter of 2025,” the machinery and equipment manufacturer said in its earnings release.

The S&P 500 also posted a new record closing at more than 7,200 points. That's a first for the U.S. stock index.

The Nasdaq was also up more than 200 points, also hitting a new record high.