Even so, since the market began its post-election rally, there has been anticipation that the Dow milestone would be achieved before the end of previous year.
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The S&P 500 was up 0.80%, and the Nasdaq climbed 0.99%, also setting new records. The 9% the Dow has added since Election Day is the sort of move that is usually reserved for market rebounds after big tumbles as opposed to when it.
But when it reached 20,000 from the 19,000 mark attained late previous year, the gain was only 5.3%. On the Nasdaq, 1,894 issues rose and 891 fell. It was the second-fastest 1,000-point trip in its history. After crossing the 10,000 market in 2002, the market crashed in 2009, finally getting back above 10,000 the following year. “Now you’re trading on the edicts, or whatever they may be, that are coming out of the White House”. It gives an economic good housekeeping seal of approval to a new Trump administration that’s struggled thus far to focus on the most important matters. Britain’s FTSE 100 was up 0.2 per cent after the Supreme Court said parliament would have a right to vote on whether Britain formally exits the European Union. The Dow rose to within a point of the level on January 6 before quickly backing off.
The New York Stock Exchange on Wall Street in New York.
At 12:59 p.m. ET (1759 GMT), the Dow was up 148.2 points, or 0.74 percent, at 20,060.91 – on track for its best day since December 7. They threw “Dow 10,000” caps to a cheering crowd of traders. Investors expected corporate profits to soar in response to his business-friendly agenda, and quickly bid up stock prices.
“I would hesitate to call it a Trump rally”, he said.
“Now it’s just a matter of waiting for the fundamentals to catch up with what the expectations are”, he said.
Although the Dow is a narrow gauge, its performance has been close enough to the broader indexes to serve as a barometer of the market. Financials surged 1.7% to lead all sectors higher.
Rapid rises in the Dow have been followed by equally rapid falls. Apple stock has fallen 5.5% since being added to the Dow, while the Dow itself is up 11%.
The Dow has risen near 30 per cent the last 12 months.
If the 20,000 figure sticks around, folks will quickly put it in their rear-view mirror in pursuit of the next landmark barrier for the Dow to break. After the crash it took the Dow six years to return to that level.
“The stock market has given him this extraordinary vote of approval”.
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On Wednesday, Boeing hit a record high of $168.65 on strong earnings, giving the Dow its biggest boost before closing up 4.2 percent at $167.36 percent gain. The Conference Board’s consumer confidence index rose to 113.7, up from 109.4 in November. It’s a price-weighted index, meaning that stocks with higher prices have a greater influence on the Dow’s direction.
