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25 Jan, 2017 14:38

Dow Jones Industrial Average hits 20,000 for first time ever

Dow Jones Industrial Average hits 20,000 for first time ever

The US premier stock index the Dow Jones Industrial Average hit the 20,000 point milestone for the first time on hopes US President Donald Trump’s administration will boost infrastructure spending.

The index came close to reaching the historical high on January 6, as investors were inspired by pro-growth policies and tax cuts from Trump.

"A seminal moment. It is just a number but it is a big number, it is certainly a flashy number," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York, as quoted by Reuters.

"There is a real belief that Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought," he added.  

The new record sees the Dow up 1,667 points since Trump's victory in November. Wall Street expects President Trump to slash taxes, boost investment in US industry and cut regulation.

The surge in US stocks was preceded by Trump’s signing of two executive orders to back the construction of the Keystone XL and Dakota Access oil pipelines, rolling back President Barack Obama’s pivot to renewable energy.

"It's time dust off those Dow 20k hats again, because the Trump rally is well and truly back on," said Neil Wilson, senior market analyst at ETX Capital before the opening bell.

"We are clearly seeing a pro-business administration that is minded to action," Wilson added.