Update | Dow Jones closes over 20,000 for first time ever in Trump-inspired rally
The Donald Trump rally is reignited by solid corporate earnings, investor optimism
The Dow Jones Industrial Average closed atop the 20,000 mark for the first time ever as solid earnings and optimism over President Donald Trump’s pro-growth initiatives revitalised a post-election rally.
Trump has made several business-friendly decisions since taking office on Friday, including signing executive orders to reduce regulatory burden on domestic manufacturers and clearing the way for the construction of two oil pipelines.
The S&P 500 and the Nasdaq Composite indexes also closed at record highs for a second consecutive session.
The Dow came within a point of the historic mark on January 6, as investors banked on pro-growth policies and tax cuts many expect from the new administration. However, the index had struggled in recent weeks as investors awaited clarity on the new administration’s policies grew cautious.
“It was definitely a milestone that the market has been focused on for really the better part of two months and you were starting to get a little bit of anxiety as to whether it was going to be surmounted or not,” said Julian Emanuel, equity strategist at UBS in New York.