Dow’s 20K record isn’t the only sign of a ‘fearless’ Wall Street

The S&P 500 rose 0.8% to 2,298.37 today, while the Dow Jones Industrial Average gained 155.80 points, or 0.8% to 20,068.51. With its larger weighting toward financial and industrial stocks, catalysts such as a Federal Reserve hike, an improving economy and optimism over President Trump’s deregulation and infrastructure-building plans have served the Dow better than the S&P.

The rally prompted further stock buying by investors who were caught off guard in what O’Hare dubbed “FOMO” or the “fear of missing out” and the Dow was 20,010.71, up over 0.5 percent, 15 minutes into trading.

“That should get everyone confident he’ll get those three other things done. which is taxes, trade and regulation”.

“A seminal moment. It is just a number but it is a big number, it is certainly a flashy number”, said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

“I think the market is emotional and very giddy”, said Kejriwal, whose firm bills itself as the first behavioral wealth management firm in the nation.

US share prices have been boosted by hopes that the economic policies of the new US President, Donald Trump, will boost his country’s economy.

The Dow Jones Industrial Average, Wall Street’s blue-chip stock market, has smashed through the 20,000 points barrier for the first time.

The rise from 18,000 to 19,000 took the Dow 483 trading sessions.

The Dow’s spectacular 1,700-point surge has largely continued since President Donald Trump’s election on November 8, a night of uncertainty which saw the index temporarily fall 800 points. President Barack Obama killed the proposed Keystone XL pipeline in late 2015, which would run from Canada to US refineries in the Gulf Coast, saying it would hurt American efforts to reach a global climate change deal.

Another warning: The recent AAII bullish percent has risen to 44.7%, Neutral is at just 23% “the bottom of its typical range”.

Energy stocks rose more than the rest of the market early Thursday as the price of oil gained 2 percent.

Put simply: Unless Trump can convince Fed Chair Janet Yellen to ease up on the rate hikes – or replace her with someone more cooperative – the bull market could soon end.

A lift in gas and electricity prices will benefit earnings in utility companies, though this will be offset by weaker volumes year to date.

Furthermore, the market’s upward march has been steady since it bottomed out in spring 2009, following the financial crisis.

This is expected to be the busiest week for corporate earnings news, with about 30 percent of the companies in the S&P 500 reporting quarterly results.

Throughout Obama’s eight years, the Fed has raised interest rates only twice (for a total of 0.5 percentage points).