That was fast! The Dow Jones Industrial Average on Wednesday traded above 21,000 on Wednesday, putting it on pace to touch a psychologically significant level and logging the quickest pace to such a benchmark.
The blue-chip gauge closed at 20,000 just a few weeks ago, marking a then-second-fastest push (42 days) to a 1,000-point milestone. If the benchmark closes at 21,000 today, it would match the fastest-ever surge to such a milestone at 24 days, equaling the same span of trading sessions between 10,000 and 11,000 in May 1999.
Equity benchmarks appear to be shaking off the prospect of an interest-rate hike as early as mid-March to touch another key level, on the heels of reignited optimism about the health of the U.S. and global economy and the belief that Trump can bring into reality campaign promises that include boosting fiscal spending and cutting taxes.
Details around those reforms are still scant but investors appeared to be heartened by the tone Trump established during his address in front of joint session of Congress in a State of Union-style speech late Tuesday.
The Dow DJIA, +1.46% is up nearly 15% since Trump’s Nov. 8 election victory, the S&P 500 index SPX, +1.38% has gained nearly 11%, while the Nasdaq Composite Index COMP, +1.24% has advanced roughly 13% during that period.
Of course, as the market rises, each 1,000-point advance becomes smaller on a percentage basis. The move from 20,000 to 21,000 marks a 5% rise, while the move from 19,000 to 20,000 was a 5.3% move. The move between 10,000 and 11,000 in 1999 marked a 10% rise.
On Wednesday, the Dow was up 260 points, or 1.2%, at 21,070, The S&P 500 gained 27 points, or 1.2% at 2,390, while the Nasdaq Composite added 62 points, or 1%, at 5,887. All three benchmarks were looking at logging fresh all-time closing highs. It remains to be seen if the Dow will close at its rarefied level. SOURCE