The Dow Jones Industrial Average, a key gauge of the U.S. stock market, soared past the 50,000 mark on Friday, setting a first-of-its-kind record more than a century after the index was created.

In its 129-year history, this is the first time the Dow Jones index eclipsed 50,000 points, rising by 2.47 per cent.

Made up of 30 major companies, the blue-chip index rebounded sharply after earlier losses this week, closing at 50,115.67 despite an aggressive tariff blitz imposed by President Donald Trump.

Stocks slumped earlier in the week as renewed concerns over intensifying competition in the artificial intelligence space prompted investors to sell off their holdings.

However, shares of Nvidia surged by eight per cent, while Caterpillar climbed seven per cent, providing a strong boost to the Dow.

The rally was further supported by a rise in Goldman Sachs shares, which gained more than four per cent, helping to push the Dow to historic highs.

However, Amazon, recorded the steepest decline, with its shares plunging 5.6 per cent, days after the company announced a $200 billion investment in artificial intelligence and robotics.