NYSE: Dow Tops 21000 for First Time

Futures pointed to a higher open for Asian markets on Tuesday, tracking US gains, as investors await a key speech from President Donald Trump. Banks and other financial companies led the gainers, amid heightened expectations that an improving economy will lead to higher interest rates.

France’s CAC 40 Index ended the day unchanged from the previous close.

Equities rallied on both sides of the Atlantic amid increased bets on a US Federal Reserve interest rate hike this month.

Meanwhile, the 10-year Treasury yield rose after moving little during the USA session, stoked by late Tuesday’s commentary from Fed officials.

David Cheetham, chief market analyst at online trader XTB said Trump’s speech was the main trigger for the strong rally on Wall Street and especially his “commitment to tax reform and $1 trillion [£810bn] of infrastructure spending”.

Philadelphia Fed President Patrick Harker is due to address the economic outlook at Temple University at 3 p.m.

“Fed speakers trump Trump”, Richard McGuire, the head of rates strategy at Rabobank International in London, wrote in a note.

Stocks have risen sharply in the wake of the November 8 election, bolstered by Trump’s promises of tax reform, infrastructure spending and reduced regulations, and investors are looking for more specifics on how he may achieve those promises.

A turn toward a more hawkish Fed in recent months has boosted Wall Street’s confidence in the economy.

The stock market set a new record today, closing above 21,000 for the first time ever. It was the first time the benchmark gauge closed above 21,000.

Among stocks, electric carmaker Tesla fell 4.4 percent to $245.57 after Goldman Sachs downgraded the company’s stock to “sell” from “neutral” and lowered its price target.

The Dow crossed the 19,000, 20,000 and now 21,000 thresholds since 2016’s Election Day, and if it finishes the trading day Wednesday above 21,000, it will signify a tie for the fastest thousand-point increase in its history. The Nasdaq Composite closed at 5,825.44 for a loss of 36.46 points or 0.62%.

The yen traded at 112.77 per dollar, after slipping for two days. The FTSE 100 index of leading British shares added 0.1 percent.

The S&P is on track for a February gain of more than 3%, representing its largest monthly rise since March 2016 (http://www.marketwatch.com/story/the-sp-500-is-on-track-for-its-largest-monthly-gain-in-nearly-a-year-2017-02-28).

Target was the biggest percentage loser on the S&P, dropping 13.2 percent after the big-box retailer warned sales could continue to decline this year. However, 24% of Democrats interviewed said they were more optimistic after the president’s speech. It was down 13 cents, or 0.2 percent, at $53.88 a barrel in NY. Martin Marietta Materials rose $5.21, or 2.5 percent, to $215.26, while Vulcan Materials added $2.78, or 2.4 percent, to $120.60.