DOW Races to 20,000, S&P, transports At All-Time Highs!

Stocks Surge Over 1%

trump

Donald Trump is still months away from its official inauguration as President of the United States, yet his iconic “Make America Great Again” campaign slogan is already working wonders. Today, Dow, S&P and transports closed at all time highs, while all stocks surged with more than one percent.

Dow is racing to 20,000, despite mainstream media’s outrageously bad election predictions, i.e. that the sky will fall and the markets will tank in the eventuality of a Trump presidency. United States equities closed significantly higher on Wednesday, with the S&P and the Dow hitting new record highs.

However, many investors are still awaiting for an official announcement with regard to European Union’s monetary policy from the EU Central Bank, i.e. an extension of the ECB’s quantitative easing program, especially after the Referendum in Italy that put the country’s banking system in a vulnerable spot. Also, the FED is expected to raise interest rates at their next Wednesday’s meeting.

S&P 500’s earlier losses were totally erased today, ending up with a 1.3 percent net gain, thanks to telecoms rallying big, approximately 2.4 % to lead advances. Also, the Dow Jones industrial average hit the jackpot, gaining almost three hundred points, with blue chip companies like IBM, Home Depot and Goldman Sachs being the main contributors to the rally.

Dow Transports marked a premiere today, hitting their first intraday high in 2 years and closing at an all time high. Since Donald Trump won the elections on November 8, transports gained over twelve percent.  According to 50 Park Investments CEO Adam Sarhan, let me quote:

“I think this is more momentum from the Trump rally. You’ve got the financials, transports, steel stocks, small and mid-cap stocks all trading higher. The areas that have worked [since the election] continue to work. While all this is happening, you’ve seen virtually no selling. That’s very good for stocks moving forward”

 

The Nasdaq composite gained 1.2% despite the 3% loss in iShares Nasdaq Biotechnology ETF, while the small caps S&P Mid Cap 400 and Russel 2000 closed at record highs.

Market analysts ares somewhat cautious after the huge market rally riding on the wave of optimism in the economy due to Trump’s election as United States’s 45th President. The CEO of Tower Bridge Advisers, Mr. Maris Ogg is actually expecting a correction in the near term, but investors are looking forward for the past problems/poor policies in the US economy to be corrected by the new administration.

Since November 8th, the Nasdaq and the S&P have risen 3,9% and 4.8% respectively, while Dow posted gains in eighteen of the past twenty two sessions, including twelve record closes. The chief market strategist at Wunderlich Securities, Art Hogan summed it up pretty good:

“We’ve obviously had a pretty significant run over the past few weeks, but with hardly any down days. The market is trying to price in a paradigm of fiscal stimulus and deregulation.”

 

Source: CNBC