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| Dow Jones finishes above 20,000 milestone for first time | |
| (about 2 hours later) | |
| Wall Street stock markets hit a fresh record on Wednesday, with the Dow Jones Industrial Average ending above 20,000 points for the first time. | |
| The S&P 500 and tech-heavy Nasdaq also achieved new highs, fuelled by hopes that President Donald Trump's policies will boost the US economy. | |
| The Dow, which has nudged the 20,000 milestone during January, rose 0.8% to 20,068.51. | |
| Investors' cash has poured into shares on hopes of tax cuts and higher growth. | Investors' cash has poured into shares on hopes of tax cuts and higher growth. |
| The Dow had risen above 20,000 early into the trading day, prompting Mr Trump's senior adviser Kellyanne Conway to tweet that the landmark was down to "The Trump Effect". | |
| "It was definitely a milestone that the market has been focused on for really the better part of two months and you were starting to get a little bit of anxiety as to whether it was going to be surmounted or not," said Julian Emanuel, Equity Strategist at UBS. | |
| The Dow reached its latest 1,000-point milestone two months after closing above 19,000, making it the second quickest 1,000 point rise ever. | |
| The index rose from 10,000 to 11,000 in only 24 trading days between 29 March and 3 May, 1999, while the rise from 18,000 to 19,000 took 483 trading days (nearly two years). | The index rose from 10,000 to 11,000 in only 24 trading days between 29 March and 3 May, 1999, while the rise from 18,000 to 19,000 took 483 trading days (nearly two years). |
| Financial stocks have been a major factor in the gain - with Goldman Sachs and JPMorgan accounting for around 20% of the rise. | |
| This is because investors believe that some of Mr Trump's policies will trigger inflation and produce a rise in interest rates. | This is because investors believe that some of Mr Trump's policies will trigger inflation and produce a rise in interest rates. |
| Also on Wednesday, the broad-based S&P finished up 0.8% at 2,298.37, while the Nasdaq advanced 1% to 5,656.34 - both fresh records. | |
| What is the Dow Jones Industrial Average? | What is the Dow Jones Industrial Average? |
| Analysis by Michelle Fleury, New York business reporter | Analysis by Michelle Fleury, New York business reporter |
| Finally, the Dow hit 20,000 at the US market open after being tantalisingly close for weeks. | Finally, the Dow hit 20,000 at the US market open after being tantalisingly close for weeks. |
| When the moment came, floor traders at the New York Stock Exchange were ready. | When the moment came, floor traders at the New York Stock Exchange were ready. |
| Long before the opening bell rang, one trader yelled 'get your hats on, get your hats on'. | Long before the opening bell rang, one trader yelled 'get your hats on, get your hats on'. |
| He was referring to the baseball caps emblazoned with Dow 20,000 on the front. | He was referring to the baseball caps emblazoned with Dow 20,000 on the front. |
| It's a tradition dating back to the first time the Dow passed 10,000. To mark the occasion, they made hats. And the habit stuck. | It's a tradition dating back to the first time the Dow passed 10,000. To mark the occasion, they made hats. And the habit stuck. |
| Wall Street veteran Art Cashin, director of floor operations at UBS had his on. | Wall Street veteran Art Cashin, director of floor operations at UBS had his on. |
| When asked if the Dow at 20,000 matters, he answered that the publicity would make people think about their own investments and that was a good thing. | When asked if the Dow at 20,000 matters, he answered that the publicity would make people think about their own investments and that was a good thing. |
| For many though today's historic milestone is just a round number. Its value is symbolic. | For many though today's historic milestone is just a round number. Its value is symbolic. |
| In part that has to do with the index itself. | In part that has to do with the index itself. |
| The Dow Jones Industrial Average is made up of only 30 companies compared with 500 in the S&P 500. So it is far from comprehensive. | |
| Then there is the way it is calculated. | Then there is the way it is calculated. |
| The Dow puts too much emphasis on share price, unlike the S&P 500 which reflect its members market capitalization. As a result, a few names have the power to significantly move the index. | The Dow puts too much emphasis on share price, unlike the S&P 500 which reflect its members market capitalization. As a result, a few names have the power to significantly move the index. |
| Make no mistake though, this will be front page news. And for market professionals, it's a moment to pop the champagne, celebrate and pull out their Dow 20,000 baseball caps because who knows when they'll be able to wear it again. | |
| Further gains? | Further gains? |
| Tim Ghriskey, chief investment officer of financial management firm Solaris Group in New York, said: "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." | Tim Ghriskey, chief investment officer of financial management firm Solaris Group in New York, said: "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." |
| Neil Wilson, senior market analyst at London brokers Capital, said: "It's psychologically huge and, after a bit of pullback ahead of the inauguration, really confirms that the 'great rotation' from bonds to stocks is definitely upon us. | Neil Wilson, senior market analyst at London brokers Capital, said: "It's psychologically huge and, after a bit of pullback ahead of the inauguration, really confirms that the 'great rotation' from bonds to stocks is definitely upon us. |
| "Fears about protectionism are running second to optimism about inflation and growth - for now at least. | "Fears about protectionism are running second to optimism about inflation and growth - for now at least. |
| "The question now is how long can this last? | "The question now is how long can this last? |
| "Mr Trump's first steps as president have confirmed much of what investors had hoped for and that he's extremely pro-business and light on regulation for energy and financials. That's what's driving this renewed rally. | "Mr Trump's first steps as president have confirmed much of what investors had hoped for and that he's extremely pro-business and light on regulation for energy and financials. That's what's driving this renewed rally. |
| "The other argument claims that this is a massive bubble and if this is a real rotation from bonds into stocks, ending a 30-year bond bull market, there is still a huge amount of cash piled up that could yet pour into equities and power further gains through 2017. | "The other argument claims that this is a massive bubble and if this is a real rotation from bonds into stocks, ending a 30-year bond bull market, there is still a huge amount of cash piled up that could yet pour into equities and power further gains through 2017. |
| "It might not be too long before 21,000 is in sight." | "It might not be too long before 21,000 is in sight." |