For the first time in history, the Dow Jones has crested 20,000.
High hopes for a business-friendly Trump administration helped the Dow break the 20,000 milestone Wednesday morning, and market watchers think the president’s pro-America policies can keep stocks rising steadily.
The industrial average has now risen 9 percent since Election Day. Stronger U.S. economic data and optimism about Trump’s business policy, among other factors, have pushed not only the Dow, but also the other major averages and small-cap stocks, higher in that time.
— President Trump (@POTUS) January 25, 2017
“It shows the market on a general level is optimistic,” said Claudia Mollerup-Madsen, a vice president and financial adviser at Morgan Stanley’s Houston office.
“Since Election Day, the Dow Jones has risen more than 1,800 points on a ‘Trump Rally’ with most of the bump going toward banks and industrial stocks.”, said Mollerup-Madsen.
The optimism is in large part tied to the almost immediate implementation of promises made by President Donald Trump during his presidential campaign, where he promised to lower tax rates, increase infrastructure spending and relax regulations for oil and gas companies. Investors see new jobs, new sectors seeing growth, and lower taxes spurring corporate investment for expansion.
If the index stays above 20,000 by the time the day’s trading ends, then it would mean the 42-session rise from the first close above the 19,000 mark would be the second quickest 1,000 point rise of all time.