The US stock market reached a key milestone today, with the Dow Jones Industrial Average (INDEXDJX:.DJI) overtaking the 20,000 barrier for the first time ever. The feat is the latest in a long list of records broken over the past twelve months that has seen one of the most sustained bull runs in history continue to catch its legs.
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The latest push above 20,000 is the culmination of several market factors, including expectations for lower tax rates for corporations and individuals under the Trump administration. Indeed, a litany of freshly inked executive orders since last week has breathed added life into the rally, which earlier today reached a peak of 20,057.89 during US trading Wednesday.
Dow Jones Industrial Average hits 20000 for the first time https://t.co/yctLLfikvX
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Despite almost touching 20,000 earlier this month, market participants were apparently waiting for clarity regarding Trump’s policy agenda, a stance that has been clearer since Friday. Hopes of a Trump stimulus package are also helping to kindle a continued push higher in the markets, which will ultimately prompt more inflation and a rise in interest rates should this path continue.
A number of investment institutions have also benefited from the ‘Trump rally’, including banks such as Goldman Sachs and JPMorgan. The boost was also extended to other indices such as the S&P500 (INDEXSP:.INX), which itself peaked at 2,294.42 today and the Nasdaq Composite (INDEXNASDAQ:.IXIC) at 5,643.10.