The Dow Jones Industrial Average (DIA) closed at an all-time high after new data showed that inflation in the U.S. continues to trend down towards the U.S. Federal Reserve’s 2% target.

The leading index that is comprised of 30 blue-chip stocks and meant to act as a proxy for the U.S. economy finished trading on Sept. 27 up 137 points, or 0.3%, and at an all-time high of 42,313.00. It was the 32nd time this year that the Dow closed at a record high.

The latest all-time high was achieved after the U.S. Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, showed consumer prices continued to cool in August, declining to an annualized rate of 2.2%. That’s near the U.S. central bank’s 2% annualized inflation target. Core inflation, which excludes volatile food and energy prices, rose 2.7% during August.

Markets Remain Buoyant

Markets have remained buoyant since the U.S. Federal Reserve lowered interest rates by 50-basis points on Sept. 18. While it closed down 0.18% on Sept. 27, the benchmark S&P 500 index has hit several record highs since the U.S. central bank cut rates and signaled further reductions are likely in coming months.

Elsewhere, China’s CSI 300 stock index rose 4.5% on Sept. 27, ending the week up 16% for its biggest weekly increase since 2008. Hong Kong’s Hang Seng Index recorded its biggest weekly gain since 1998. The increase in Chinese equities was driven by news of government stimulus measures for the domestic economy. Also, gold’s price continues to rise, with the precious metal on track for its largest quarterly gain on record.

Is the DIA ETF a Buy?

The SPDR Dow Jones Industrial Average ETF Trust, which is an exchange-traded fund that tracks the movements of the Dow 30 index, has a consensus Hold rating among 61 Wall Street analysts. That rating is based on 50 buy and 11 Hold recommendations made in the last three months. The average price target of $468.47 implies 10.76% upside from current levels.

Read more analyst ratings of the DIA ETF