The Dow Jones Industrial Average rose past 21,000 Wednesday morning as investors processed President Trump’s address to Congress and bullish comments from Federal Reserve officials Tuesday.
Stocks surged, led by big banks, and the dollar strengthened as markets priced in expectations about growth and earnings.
If the Dow finishes above 21,000, it would tie the record for the fastest time from one thousand-point milestone to another, according to the Wall Street Journal. The index first hit the 20,000 mark on January 25.
Wednesday’s rally came after Trump’s major speech, in which he pledged to pursue tax reform, regulatory reform, and several other items pleasing to investors. Some analysts were giving the speech credit for the Wednesday surge.
“The belief is it will be a more pro-business agenda and create better optimism and better opportunity, and you’re seeing that play through in terms of sentiment,” said Baird Advisors chief investment officer Mary Ellen Stanek, speaking on Bloomberg TV.
Another factor buoying markets was the reassurance from Fed officials throughout Tuesday that the recovery has momentum and that they are on track to continue raising interest rates later this year, perhaps as soon as March.
On Wednesday, investors saw greater than a 50-50 chance that the central bank would raise its interest rate target three times in 2017, according to bond market prices published by CME Group. Fed officials projected in December that they would hike three times in the year, but until Wednesday investors had remained skeptical.
