It’s Another Record! Dow Hits Over 21000 for First Time

Stocks opened strongly higher on Wall Street, led by big gains in banks as investors expected interest rates to rise. Investors have also cheered data confirming an economic recovery in Europe and a turn around in company earnings.

Market expectations that he might deliver some more specific details about his tax policies and plans to fund infrastructure were carefully played down by his administration in advance of the speech. The Standard & Poor’s 500 closed at 2,363.64 for a loss of 6.11 points or 0.26%.

AT&T slipped 1.3 percent and was the top drag on the S&P telecom index. Small-company stocks fell more than the rest of the market.

It took just 24 trading days (and 35 calendar days) for the index to reach this latest landmark interval from the prior one of 20,000, which it touched on January 25.

USA government bonds weakened and the dollar jumped.

Trump reiterated his economic plans to increase infrastructure spending, lower taxes and promote deregulation.

“Under such conditions, we are likely to see a gradual rise in USA stocks, with volatility remaining low, until the Fed overkills the economy”, he said.

Analysis: Trump shifts from doom-and-gloom to a more optimistic vision.

The S&P financial index soared 2.5 percent, far outperforming the other 10 major sectors, also helped by key Federal Reserve officials who stoked the possibility of an interest rate hike this month. Goldman Sachs rose $5.52, or 2.2 percent, to $253.58. LUMBER JACKED: Builders FirstSource, a maker of building materials, jumped 12.7 percent, getting a boost from rising lumber prices.

Wall Street saw a record-setting start Wednesday. London’s FTSE 100 was recently around 1.5 per cent up on the day. Earlier in Asia, Japan’s benchmark Nikkei 225 gained 1.4%, and Hong Kong’s Hang Seng added 0.2%. South Korea’s markets were closed for a holiday.

In commodity markets, oil futures turned negative after USA crude inventories rose to a record high. Elsewhere, the Case-Shiller home price index rose more than forecast in December, and Chicago-area manufacturing data unexpectedly climbed higher last month.

According to the Commerce Department, the United States real gross domestic product over the past year has increased 1.9% during the last quarter but missed market consensus estimates of 2.1%.

In currency markets, the dollar gained 0.53% against the pound to 0.8121, was up 0.21% versus the euro to 0.9475 and was 0.94% firmer against the yen at 113.83.