Wall Street rallies to huge gains, record closing
- Author: Zachary Reyes Mar 02, 2017,
Mar 02, 2017, 15:37
The promises have helped send US stock benchmarks to records, but Trump offered little by way of detail.
"It's all about policy now", said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.
The Dow Jones Industrial Average closed at over 21,00 points for the first time ever on Wednesday.
The S&P 500 rose 1.4 percent Wednesday, and the Nasdaq Composite added 1.4 percent. And the latest drive ties the Dow's fastest move between thousand-point markers in history, the last in 1999 when the index jumped from 10,000 to 11,000 in 24 sessions (provided by the Wall Street Journal). It fell 1 percent in January, coming in well below expectations.
The three benchmark indexes touched fresh record highs, with the Dow rising above 21,000 for the first time.
What could end the Dow's winning streak? Nine months later, on October 19, 1987, the Dow plummeted more than 500 points, or about 22 percent, on what became known as Black Monday. The Dow notched 12 straight gains heading into Tuesday's trading.
"It was expected, yet still seen as disappointing, after the US GDP dropped 0.1%, and the figures are suggesting the world's largest economy is continuing to lose momentum", said Paul Sirani, Chief Market Analyst at Xtrade.
Investors were also encouraged Wednesday when top officials of the US central bank said they were closer to raising interest rates. On Monday the president told a group of governors, "We're going to start spending on infrastructure big".
Winners and Losers: Defense stocks, including Boeing and Lockheed Martin, performed well Monday after the White House announced a request for a $54 billion increase in military spending. The stock gained $1.92 to $14.86.
Financial stocks surged 2.6 percent, the most since November 14.
President Donald Trump's address to Congress on Tuesday night did little to alter views that his administration will seek pro-growth policies.
They say even though Trump did not give much specifics on several economic issues, his optimistic tone seems to have pleased investors.
Traders also weighed the latest crop of company earnings and outlooks.
Having touched 18-month highs last week, West Texas Intermediate was down 0.2% on the day to $53.92 per barrel, while Brent crude was 0.6% weaker at $55.59.
Power company AES fell 6.6 percent after its full-year profit forecast disappointed investors.
Stocks did well throughout the market. TD Ameritrade slid $4.45, or 10.2 percent, to $39.21.