New York ? The Dow Jones industrial average closed just above 10,000 Thursday, a milestone not seen in 18 months that encompassed a painfully deep dive in stocks as well as a surprisingly vigorous rebound.

Stocks first gained ground on a better-than-expected retail sales report and then sprinted higher in the late afternoon on a suggestion from the Federal Reserve that higher interest rates weren’t coming any time soon.

Traders watch as the Dow Jones industrial average closes above 10,000 points while working on the New York Stock Exchange floor. The Dow closed Thursday at 10,008.16, a milestone not seen since May 24, 2002.

The Dow closed up 86.30, or 0.9 percent, at 10,008.16. The last time the index closed above 10,000 was May 24, 2002, when the Dow stood at 10,104.26.

“What got the rally started was the Fed,” said Michael Murphy, head trader at Wachovia Securities in Baltimore. “It’s the old Goldilocks theme — low rates, low inflation and strong growth,” explaining that it was the right combination for a strong advance.

The milestone marked a solid comeback from the Dow’s five-year low of 7,286.27 on Oct. 9, 2002, and to many represents the return of the bull market following three years of bitter declines.

As the economy continues to show signs of improvement, analysts say investors are moving out of the tech and small-cap stocks that have led the recovery since March and shifting their profits into larger blue-chip companies.