WASHINGTON, May 16 (Reuters) - The Dow topped 40,000 for

the first time on Thursday in an all-time high, giving U.S.

President Joe Biden an opening to prove his Republican election

rival's 2020 predictions wrong.

The state of the U.S. economy looms as one of the larger

factors weighing on the Democratic president's bid for

reelection. Persistently high prices have hindered Biden's

efforts to win credit from voters for his handling of the

economy, although inflation in recent months has been easing.

"Good one, Donald," Biden said in a post on X hours after

the blue-chip index made its gains.

In an accompanying video, a split screen shows Donald Trump

campaigning in the 2020 presidential election he lost to the

Democrat.

"If Biden wins, you're going to have a stock market collapse

the likes of which you've never had," Trump says in the video

clip.

The top half of the screen shows the year 2024 and images of

Biden and Vice President Kamala Harris, with commentary from an

array of business television newscasters on the 40,000 breach.

"The Dow 30 broke 40,000 for the first time in history," one

broadcaster says.

"Look at that market!" exclaims a second.

"We see earnings increasing for the second quarter. We see

record earnings estimates for the third and fourth quarter and

that's what really impresses me," another intones.

The video ends with Fox Business Network's Stuart Varney

saying, "I've been doing this a long time. I never expected the

Dow to hit 40,000."

The Trump campaign did not immediately respond to a request

for comment.

Biden has struggled to convince voters of the efficacy of

his economic policies despite a backdrop of low unemployment and

above-trend economic growth. A Reuters/Ipsos poll last month

showed Trump had a 7 percentage-point edge over Biden on the

economy.