Business

Dow breaks above 20,000 for first time

NEW YORK: The Dow Jones Industrial Average traded above 20,000 for the first time yesterday, resuming a rally that began in the wake of US President Donald Trump's surprise election victory.

The rally was reignited by Mr Trump's signing of numerous executive orders since his inauguration on Friday.

The index came within a point of the historic level on Jan 6, as investors banked on pro-growth policies and tax cuts.

But the index had stalled recently, dropping modestly in consecutive weeks, as investors grew cautious as they looked for clarity on the administration's new policies.

Until now.

"A seminal moment. It is just a number, but it is a big number. It is certainly a flashy number," said Mr Tim Ghriskey, chief investment officer of Solaris Group.

"There is a real belief that Mr Trump is real, he has been extremely active these first couple of days of the presidency, and a change may happen faster than people had thought."

"Great! #Dow20k," Mr Trump tweeted from the White House.

If the index remains above 20,000 by closing time, the 42-session surge from the first close above 19,000 will mark the second-shortest length of time between such milestones.

The 24 trading days between 10,000 and 11,000 from March 29 to May 3 of 1999 was the fastest.

The rise from 18,000 to 19,000 took the Dow 483 trading sessions.

The move since Nov 22, when the index closed above 19,000 for the first time, has been spearheaded by financial stocks - with Goldman Sachs and JPMorgan accounting for about 20 per cent of the gain. Yesterday, Boeing rose 2.3 per cent after its earnings, and Goldman Sachs was up 0.7 per cent, helping to push the index over the top.

The S&P and the Nasdaq also hit record intraday highs. - REUTERS

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