Thank you President Trump cheersgif
For the first time in history, the Dow Jones Industrial Average has passed the 20,000 mark.
Investing under Trump Add to myFTDow Jones Industrial Average hits 20,000 for first timeWall Street barometer passes milestone as Trump rally on back of tax cuts and stimulus resumes
2 HOURS AGO by: Adam Samson in New YorkThe Dow Jones Industrial Average on Wednesday rose above 20,000 points for the first time, marking a milestone for Wall Street’s equity barometer as investors bet Donald Trump’s flurry of new trade and regulatory policies will add fuel to the US economy.
The gauge of blue-chip companies climbed as much as 0.7 per cent to 20,057.89 in opening trading as US equities extended their record-setting rally that began after Mr Trump’s victory in November’s presidential election.
Investors have poured money into shares led by financials and other cyclical companies on hopes a mix of tax cuts and fiscal stimulus from the Trump administration will accelerate economic growth and inflation.
After a strong rally late last year, the Dow has spent more than a month stalled in sight of the 20,000 threshold as investors awaited greater policy clarity from Mr Trump.
Sentiment for equities has picked up this week, with the S&P 500 back in record territory, led by basic material shares after Mr Trump signed executive orders advancing construction of two controversial pipeline projects and signalled he would go forward with building a wall on the southern border with Mexico.
Quincy Krosby, market strategist at Prudential Financial said: ‘’With a swift move towards signing executive orders, coupled with underlying positive economic data, clarity has begun to hit the headlines, and all the US indexes are celebrating.’’The Dow’s strong performance since the election reflects big gains for banks, including shares of Goldman Sachs which are up 29 per cent. Those of JPMorgan Chase have jumped 21 per cent.
Since the start of the year, however, the rally in the two groups has cooled, with investors rotating into Visa and Nike, two stocks that lagged behind from the election to the end of 2016 but are now up by more than 5 per cent year-to-date. IBM, the technology heavyweight, is also up by 6 per cent.
Launched in 1896 and comprising 30 of America’s best-known companies, the Dow has surged nearly 9 per cent since Donald Trump’s victory in the November election. As a price-weighted average, the Dow has been catapulted higher by strong gains in those member companies with the highest share prices, notably Goldman Sachs, currently trading around $234.
The S&P 500 — a benchmark created after the Dow and based on market capitalisation — is far more important to professional investors since it captures a broader cross-section of corporate America. It has trailed the Dow’s gains, rising 6.6 per cent since election day.
Still, the broad-market barometer is trading at a record peak. The recent leg higher has been catalysed not only by optimism over brightening conditions in America, but also ”improving global economic growth”, said Dennis DeBusschere, head of portfolio strategy at Evercore ISI.
Underscoring that point, a round of manufacturing surveys from Europe, the US and Asia all pointed to a continued rebound in activity as the year kicked off.
Traders on the floor of the New York Stock Exchange in 1903 © APWhile the Dow’s march to 20,000 has captured attention, the “degree to which markets can manage to retain their collective stability and constructive trends” is of far more importance, said Peter Kenny, senior market strategist at Global Markets Advisory Group.
Excitement at the New York Stock Exchange in March 1999 when the Dow broke 10,000 © APThe Dow’s rise to 20,000 illustrates the vigour of the nearly eight-year bull market for US equities. The blue-chip average notched a bear-market closing low of 6,547.05 in March 2009, reclaiming the 10,000 mark in October of that year.
It has gained more than 13,000 points, or some 200 per cent from the crisis-era low. The S&P 500, meanwhile, has advanced 237 per cent from its bear-market low.
2 HOURS AGO by: Adam Samson in New YorkThe Dow Jones Industrial Average on Wednesday rose above 20,000 points for the first time, marking a milestone for Wall Street’s equity barometer as investors bet Donald Trump’s flurry of new trade and regulatory policies will add fuel to the US economy.
The gauge of blue-chip companies climbed as much as 0.7 per cent to 20,057.89 in opening trading as US equities extended their record-setting rally that began after Mr Trump’s victory in November’s presidential election.
Investors have poured money into shares led by financials and other cyclical companies on hopes a mix of tax cuts and fiscal stimulus from the Trump administration will accelerate economic growth and inflation.
After a strong rally late last year, the Dow has spent more than a month stalled in sight of the 20,000 threshold as investors awaited greater policy clarity from Mr Trump.
Sentiment for equities has picked up this week, with the S&P 500 back in record territory, led by basic material shares after Mr Trump signed executive orders advancing construction of two controversial pipeline projects and signalled he would go forward with building a wall on the southern border with Mexico.
Quincy Krosby, market strategist at Prudential Financial said: ‘’With a swift move towards signing executive orders, coupled with underlying positive economic data, clarity has begun to hit the headlines, and all the US indexes are celebrating.’’The Dow’s strong performance since the election reflects big gains for banks, including shares of Goldman Sachs which are up 29 per cent. Those of JPMorgan Chase have jumped 21 per cent.
Since the start of the year, however, the rally in the two groups has cooled, with investors rotating into Visa and Nike, two stocks that lagged behind from the election to the end of 2016 but are now up by more than 5 per cent year-to-date. IBM, the technology heavyweight, is also up by 6 per cent.
Launched in 1896 and comprising 30 of America’s best-known companies, the Dow has surged nearly 9 per cent since Donald Trump’s victory in the November election. As a price-weighted average, the Dow has been catapulted higher by strong gains in those member companies with the highest share prices, notably Goldman Sachs, currently trading around $234.
The S&P 500 — a benchmark created after the Dow and based on market capitalisation — is far more important to professional investors since it captures a broader cross-section of corporate America. It has trailed the Dow’s gains, rising 6.6 per cent since election day.
Still, the broad-market barometer is trading at a record peak. The recent leg higher has been catalysed not only by optimism over brightening conditions in America, but also ”improving global economic growth”, said Dennis DeBusschere, head of portfolio strategy at Evercore ISI.
Underscoring that point, a round of manufacturing surveys from Europe, the US and Asia all pointed to a continued rebound in activity as the year kicked off.
Traders on the floor of the New York Stock Exchange in 1903 © APWhile the Dow’s march to 20,000 has captured attention, the “degree to which markets can manage to retain their collective stability and constructive trends” is of far more importance, said Peter Kenny, senior market strategist at Global Markets Advisory Group.
Excitement at the New York Stock Exchange in March 1999 when the Dow broke 10,000 © APThe Dow’s rise to 20,000 illustrates the vigour of the nearly eight-year bull market for US equities. The blue-chip average notched a bear-market closing low of 6,547.05 in March 2009, reclaiming the 10,000 mark in October of that year.
It has gained more than 13,000 points, or some 200 per cent from the crisis-era low. The S&P 500, meanwhile, has advanced 237 per cent from its bear-market low.
