The US stocks showed growth this week, with major indexes setting a new record, thanks to a significant lead shown by financial and industrial stocks. The DJIA (Dow Jones Industrial Average) showed an increase of 92 points (0.5%), bringing the final figure to 20, 361. The S&P 500 rose by 7 points (0.3%) bringing the figure to 2,323. The NASDAQ Composite Index went up by 23 points (0.4%), bringing the figure to 5,757.
The 3 indexes were trading at a record after closing on Friday at an all-time high.
According to Adam Sarhan of 50 Park Investment, the markets had shown tremendous strength despite the tensions prevailing at a geopolitical and social level. This indicates the presence of a robust underlying bid within the market.
Sarhan credited the market performance with a combination of factors such as the end of the recession, a good bull market, and a positive outlook in terms of prosperity, considering the new administration’s pro-growth policies.
Gains have been noticeable since Trump took over as the President of the United States. A significant move in the upwards direction was noticed again after the President made an announcement concerning his plans for more corporate tax cuts as part of his upcoming tax plan.
Investors are reported to have found relief after Trump’s stance towards Japan and China softened. China and Japan are important trading partners. As far as Dow components were concerned, Goldman Sachs showed maximum advancement with a boost of 1.8%. The company was followed by Caterpillar Inc., which showed an increase of 1.8%, and J.P. Morgan Chase, which showed an increase of 1.2%.
Post –election rallies had a great impact on banks, as investors looked with positivity towards deregulation and growing interest rates. Industrial stocks showed gains as a result of Trump’s expected infrastructure deal, which is predicted to boost demand within the sector. Chart watchers were bullish. According to Katie Stockton, Chief Technical Strategist at BTIG, the S&P is expected to attain the 2400 level in the upcoming weeks, with a possible correction after the level is attained.
Many are stating this to be the stock market’s pro-Trump rally. As for other markets, European stocks showed higher trading, while Asian markets ended with gains. Oil showed a boost of 1.63%, while gold futures dropped by 1.21%. The ICE U.S. Dollar Index displayed minor changes at 0.09%.