For the first time in its 120-year history, the Dow Jones industrial average has surpassed 19,000 in intraday trading on Tuesday. Considered one of the world’s best stock market gauges, the Dow shot up 56 points in early Tuesday trading to reach a peak of 19,013.12. Most of the gains are attributed to Boeing.
The record breaking performance is just the latest in a streak of market indications that investors are bullish on the incoming Trump administration. The S&P also traded at an all-time high Tuesday at 2,200 while Nasdaq also saw record highs. All three indexes closed at record highs last week, as did the small-caps Russell 2000.
"Global equity markets are reacting positively to new all-time highs in the SPX," said Katie Stockton, chief technical strategist at BTIG, in a note. "Momentum is proving strong enough to overrule overbought conditions, so we think it is appropriate to be buying breakouts."
Experts are attributing the stock market gains to Donald Trump’s election victory. Investors are still not certain what his entire policy agenda will be, but they are betting on a much more friendly business environment compared to the current Obama administration.
Reminder: The Dow Jones nosedived 313 points (2.4 percent) the day following Barrack Obama’s 2012 re-election victory.
Investors seem to have more confidence in one leader than the other.