Wednesday, 1 March 2017

Dow Jones breaks through 21,000 mark

US shares have hit new highs shortly after trading on Wall Street opened on Wednesday.

The Dow Jones Industrial Average rose 242.82 points to 21,055 in early trading following US President Donald Trump's address to Congress last night.

The S&P 500 index gained 25.09 points to 2,388.73 while the tech-focused Nasdaq Composite index was up 53.44 points at 5,878.88.

Shares have been riding high since President Trump's election victory.

He has promised to cut taxes, boost infrastructure spending and cut red tape.
Banks were the top gainers on the Dow, with JP Morgan Chase and Goldman Sachs both up more than 2.6%.

Tom Stevenson from Fidelity International point out that the Dow Jones Index has only cleared the 20,000 level three weeks ago, making this the fastest rise between 1,000 milestones since 1999.

Sentiment was helped by comments suggesting that the US central bank may raise rates sooner rather than later.

New York Federal Reserve president William Dudley said late on Tuesday that the case for a rate rise had become " a lot more compelling". San Francisco's Fed president John Williams also said he saw "no need to delay" an interest rate increase.

Analysts said that expectations of the move coming at its next meeting in March had grown.

The Federal Reserve last raised rates in December - only the second time in the past decade it has done so.

BBC     News.