Dow Jones Pushes Above 20,000 for First Time, Fueled by ‘Trump Rally’

The Dow Jones overtook the key 20,000 barrier Wednesday, boosted by hopes for lower tax rates.

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.

To unlock the Asian market, register now to the iFX EXPO in Hong Kong.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

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.

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.

Got a news tip? Let Us Know