After a brief hiatus, the Dow Jones Industrial Average resumed its march toward 20000, crossing the elusive milestone on Wednesday as President Donald Trump demonstrates his seriousness about fulfilling campaign promises of lower taxes, less regulation, and more fiscal spending.
The blue-chip index’s march to the psychologically-significant level has captivated Wall Street since Trump’s surprise election in November, and comes just 64 days after crossing the 19000 threshold for the first time ever.Opens a New Window. The Dow flirted with the milestone for weeks, and came within a fraction of a point of 20KOpens a New Window. on January 6, stalling as investors awaited more concrete evidence the president would follow through on the issues he championed on the campaign trail.
At 20000, the index is up 1,668 points since Election Day.
Strength in the materials and financials sectors helped push the Dow across the line after Trump on Tuesday gave the green light for the construction of the Keystone XL and Dakota Access PipelinesOpens a New Window. – two projects that stalled under President Barack Obama’s administration. In recent days, Trump has also met with U.S. business leaders, including the chief executives of the Big Three American automakers amid a push for more domestically-built automobiles.
Financial-sector stocks have also been a key element in the post-election rally that has led not only to Dow 20K, but fresh records on both the S&P 500 and the Nasdaq Composite indexes. While action in the sector cooled in recent weeks, improving global economic growth and consolidation in the U.S. dollar/U.S. Treasury yields has been a support for risk assets, said Dennis DeBusschere, senior managing director at Evercore ISI.
“A weak U.S. dollar and an accommodative Fed are in the new administration’s best interest and as long as a significant policy ‘mistake’ is avoided, risk assets should move higher as economic growth improves,” he said.