NEW YORK (Diya TV) – After weeks of close calls, the Dow Jones made history on Wednesday blowing past a key level for the first time in its history. The Dow climbed 156 points to 20,069, and was joined in the record territory by the S&P 500 and Nasdaq.
The stock market milestone leaves the Dow up more than 1,700 points since the election of President Donald Trump last November, and speaks towards the enthusiasm investors have about the prospects for the U.S. economy.
Wall Street is clearly betting that Trump’s plans to slash taxes, ramp up infrastructure spending and cut regulation will make the American economy grow faster. If that happens, without any disruptions to global trade, it could propel corporate profits, the lifeblood of stock prices. However, now that more people are making the decision to buy Fresenius shares (Fresenius Aktien kaufen) amongst others, the jump that has been seen in terms of stocks is also a reflection of the solid economy Trump inherited from former President Obama. No wonder there has been an increase in the number of people who have invested in the stock market. Although, some of them may have been persuaded to do so after reading these Stash reviews and learning all they need to know about the market. Of course, the economy has had something to do with this too. The U.S. has added jobs for a record 75 straight months and the country’s unemployment rate is sitting near a 10-year low.
The milestone shows how much has changed in the U.S. economy over the past eight years. The index crashed to a low of 6,440 in March 2009 as Wall Street was gripping from the feared complete collapse of the American financial system.
While the economic rebound from the Great Recession has been slower than many hoped, the unemployment rate is now at the lowest level since 2007 and corporate profits have climbed to record highs.
Few expected the Dow to rise so much, especially after a Trump victory. In fact, many feared a market crash if Trump upset Hillary Clinton.
Instead, Wall Street embarked on a post-election rally that carried the Dow above both the 19,000 and 20,000 levels. The Trump rally cooled off in recent months and Wall Street hit a bit of a psychological roadblock leading up to the 20,000 level. On January 6, the Dow got incredibly close, rising to 19,999.63 before backing off. Traders on Wall Street had fun with it, with some creating hats that said: “Dow Almost 20,000.”
One reason for the pause: investors want more details on the timing and effectiveness of the stimulus plans rolled out by the new administration.
Bank stocks have been among the biggest winners since the election on Wall Street. JPMorgan Chase and Morgan Stanley have soared more than 20 percent, while Goldman Sachs is up nearly 30%, as investors bet on higher interest rates and less regulation under Trump.
