WASHINGTON, D.C. — Remember when then presidential candidate Donald Trump said that if he was elected the American people were going to start winning so much that we’d grow tired of it? According market experts we may now be on that exact path.
The Dow Jones Industrial Average crossed the 21,000 mark at the opening bell Wednesday morning in what was one of the fastest 1,000-point advances in market history.
According to market watchers, the sudden surge in optimism is being credited to Trump’s first address to a joint session of Congress on Tuesday night in which he outlined the myriad of ways in which plans to “make America great again.”
“Policymakers have been falling over themselves in the rush to suggest the U.S. economy is ready for another hike, just one quarter after the last one. Compared to the languid pace of tightening over the past year or more, this is a positively giddy pace,” IG Chief Market Analyst Chris Beauchamp told Fox Business News (http://www.foxbusiness.com/markets/2017/03/01/dow-s-latest-1k-point-advance-new-record-trump-policy-priorities-fuel-rally.html).
Many financial analysts agree that the president’s overall tone and “presidential” demeanor instilled confidence among investors, sending global equity markets soaring.
“The economy is doing well, as we can see from today’s inflation and manufacturing numbers and any additional stimulus will put it into even a higher gear, and stock markets like that,” Mark Kepner, managing director of sales and trading at Themis Trading told Marketwatch (http://www.marketwatch.com/story/wall-street-stocks-set-to-resume-rally-on-fed-rate-hike-hopes-trump-relief-2017-03-01).
“The markets are trading higher on the softer approach by the President,” Peter Cardillo, chief market economist at First Standard Financial told The Business Insider (http://www.businessinsider.com/dow-21000-stock-market-2017-3). “The dollar and yields are moving higher as next theme of the market, the ‘Fed’ overrides the Trump effect.”
The probability of a March rate hike jumped to 67.5 percent from roughly 30 percent, according to the Business Insider report. The central bank’s policy-setting body is scheduled to meet again on March 14.