The US Market is back in rally mode as today NASDAQ and S&P 500 were lifted to record highs. The stocks rally was due to the Senate DEMs proposal to President Donald Trump regarding a 1 trillion dollars infrastructure plan.
Wall Street investors were getting back in rally-mode on Tuesday, pushing NASDAQ and S&P 500 to new records and also boosting the US dollar against the Euro due to the market’s renewed optimism with regard to President Trump’s economic policies.
The Dow was doing good today too, getting withing striking distance of the almost mythical now 20,000 points milestone.
London’s Stock Exchange was relatively flat on Tuesday due to the pressure on the British pound after a court ruling that forced the British govt to seek Parliament’s approval before proceeding with formal Brexit negotiations.
After Trump’s executive action today about the Keystone pipeline projects (blocked by Barack Obama) and his meeting with Detroit’s leading auto-makers, the US stocks started to pick up momentum.
House Speaker Paul Ryan announced the administration’s strong support for public infrastructure projects which contributed decisively to today’s market rally.
Trump’s infrastructure plan (on his own website) to the tune of one trillion dollars is spread over 5 years, at least theoretically, but what’s most important is that it also has private funding aspirations.
The ironical part is that President Trump may have to fight his own party with regard to his infrastructure projects. Historically speaking, Republicans despised this type of jobs-works program as being just another big government waste of money and resources, the pork barrel creep and so on and so forth.
Together with the S&P 500 and NASDAQ hitting record highs on Tuesday, Bank of America noted that volatility hit record lows:
In fact, through Monday 23-Jan, the S&P 500 is on track to record its 5th lowest volatility for the month of January in 90 years.