After President Donald Trump’s address to the Congress, major indexes released their best day of the year as U.S. equities flow to all-time highs in Wednesday.
According to Eddie Perkin, chief equity investment officer at Eaton Vance, people mostly feel exhilarated by this news but in reality it doesn’t feel like it. He wearily stated that people are just slowly buying stocks.
Trumps address to the Congress last Tuesday night was widely exalted for its confident tone but specifics about deregulation and tax reform were absent. Those two were the main components of the postelection rally of the market.
According to ZhiweiRen, portfolio manager at Penn Mutual Asset Management, if Trumps “America First” message succeeds, it could be positive for USA’s economy in the future.
Dow Jones Industrial gained 300 points due to Goldman Sachs ending above 21,000 for the first time. On Jan 25, the 30-stock index first ended above 20,000.
S&P 500 also edged up by 1.4 percent driven by abruptly breaking 2,400 and with financials advancing 2.8 percent to lead advancers. For the first time in Feb 9, the index ended above 2,300.
S&P gained 18 points and Nasdaq as well with 34 points, while the Dow futures edged up more than 150 points ahead of the open. The Dow is already on a 12-day winning streak with equities closing lower in Tuesday.
The February ISM manufacturing index advanced to 57.7, bolstering on January’s 56.0 review, but construction spending declined 1 percent in January.
According to CME Group’s FedWatch tool, the expectation of the market for a rate hike almost doubled around 70 percent this month.
Dow Jones Industrial Average advanced 303.31 points (1.46 percent), to end at 21,115.55. Dow’s only decliners were Wal-mart, Intel and JPMorgan Chase leading advancers