Dow Jones industrials close above 21000 for first time

Dow Jones industrials close above 21000 for first time

Dow Jones industrials close above 21000 for first time

With the rally on the day, the major averages all climbed to new record closing highs.

Wall Street notched another set of milestones Monday as the Dow Jones industrial average closed at a record high for the 12th consecutive time, the longest winning streak for the 30-company average in 30 years. The Nasdaq Composite fell 10 points, or 0.2%, to 5852, though it remains a few points shy of its own record.

Since US President Donald Trump's inauguration, there has been increased confidence in the market, although a "wait and see" attitude remains as the Republican's policies have yet to come to fruition.

While Trump's speech lacked details on his plans for tax reform and replacing Obamacare, investors seem relieved that he struck a softer, more optimistic tone.

JPMorgan Chase rose 2.6 percent and Goldman Sachs rose 2.1 percent, the biggest increases in the Dow.

Among the worst performers in the Dow Jones was Wal-Mart who have contributed to most of the losses while weak Target sales dragged the S&P 500 with a 10% decline in its own shares.

Among other stocks, Charles Schwab fell 3.2 percent after the company said it would cut its ETF trade and online equity fees, following similar cuts by Fidelity Investments.

The odds of a US interest-rate hike next month jumped above 50% on Monday after Dallas Fed President Rob Kaplan said a tightening might come in the near future (

The rally was also fuelled by the probability of a rate surge by the Federal Reserve. The last time it posted a gain of more than 300 points was the day before the election.

Banks, which benefit from higher interest rates and have been among the biggest beneficiaries of the global stock market rally that followed Trump's election a year ago, rose three per cent, making them the biggest sectoral gainer in Europe. The S&P 500 leapt 32.32 points, or 1.37 percent, to 2,395.96. Trump repeated these pledges Tuesday evening in an address to both houses of congress, but has not offered many details of these plans.

In their present euphoric mood, investors are cheering the prospect of a United States rate hike, on the grounds that it will help boost bank profits and that it provides proof that the U.S. central bank is confident in the USA economic outlook.

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