Dow closes above 20,000 for first time – kesq
The historic milestone leaves the Dow up more than 1,700 points since President Donald Trump’s victory in November. Gold price in usd The achievement is evidence of how optimistic investors have become about the prospects for the U.S. Gbp usd historical data economy.
Wall Street is clearly betting that Trump’s plans to slash taxes, ramp up infrastructure spending and cut regulation will make the American economy grow faster. Binary compounds list If that happens, without any disruptions to global trade, it could propel corporate profits, the lifeblood of stock prices.
But the jump in stocks is also a reflection of the solid economy Trump inherited from former President Obama. European futures market hours The U.S. Euro to usd chart has added jobs for a record 75 straight months and the unemployment rate is sitting near a 10-year low.
The Dow 20,000 milestone also shows how much has changed in the U.S. Jpy to usd chart economy over the past eight years. Php to usd exchange rate The index crashed to a low of 6,440 in March 2009 as Wall Street feared a complete collapse of the American financial system.
The astounding 13,500-point rise since then has been fueled by a consistent, albeit imperfect, economic recovery combined with the U.S. Stock market futures yahoo central bank’s massive stimulus program and near-0% interest rates.
While the economic rebound from the Great Recession has been slower than many hoped, the unemployment rate is now at the lowest level since 2007 and corporate profits have climbed to record highs.
“The economy has come a long way in eight years. Math jokes for kids Overall, it’s a healthier economy and does justify a much higher stock market than eight years ago,” said David Kelly, chief global strategist at JPMorgan Funds.
Instead, Wall Street embarked on a very impressive post-election rally that carried the Dow above both the 19,000 and 20,000 levels. Binary code game CNNMoney’s Fear & Greed Index is flashing “greed,” a vast improvement from “extreme fear” mere days before the election. Cool pictures to draw The VIX, a gauge of volatility in the markets, has dropped to the lowest level since July 2014.
But the Trump rally cooled off in recent months and Wall Street hit a bit of a psychological roadblock leading up to the 20,000 level. Usa today sports scores On January 6, the Dow got incredibly close, rising to 19,999.63 before backing off. Usd inr forward rates Traders on Wall Street had fun with it, with some creating hats that said: “Dow Almost 20,000.”
Bank stocks have been among the biggest winners during the post-election party on Wall Street. Uk us exchange rate JPMorgan Chase and Morgan Stanley have soared more than 20%, while Goldman Sachs is up nearly 30%, as investors bet on higher interest rates and less regulation under Trump.
But JPMorgan’s Kelly worries that “markets seem to be pricing in the positives, and not worrying too much about the negatives” such as a potential trade war or fiscal stimulus that overheats the economy.
Quinlan agrees that trade remains a serious risk given Trump’s anti-trade rhetoric during the campaign. Xag usd Already, Trump has scrapped the TPP trade deal and plans to swiftly start renegotiating NAFTA.
“We need open borders, open trade and open flow of capital. Us dollar rate today in indian rupees If we start going down this deglobalization road, this market is going to lose its euphoric underpins pretty quickly,” Quinlan said.
“Is the market irrationally exuberant or will Trump prevail in a way that’s bullish for the economy?” he asked. Dollar pound exchange rate history “The bottom line on Trump is: love him or hate him, you don’t want to bet against him.”