Traders work on the floor on Wednesday at the closing bell of the Dow Industrial Average at the New York Stock Exchange in New York. The Dow closed at an all-time, breaking the 26,000 mark. (Bryan R. Smith/AFP/Getty Images)
© 2024 Blaze Media LLC. All rights reserved.
The Dow just hit an all-time high, as the GOP tax plan fuels economic optimism
January 17, 2018
The Dow Jones industrial average saw its best one-day point gain since the day before President Donald Trump was elected, and closed at an all-time high Wednesday as the stock market continues to reflect economic optimism in the Trump era, USA Today reports.
The numbers
The Dow rose 322.79 points (1.3%), the best one-day gain in 14 months.
It closed at 26,115.65, the first time the Dow has broken the 26,000 mark in its 121-year history.
Just 13 days ago, the Dow rose above 25,000, which makes this the fastest 1,000-point climb ever.
What’s causing the rise?
The new GOP tax law may be contributing heavily to the sharp rise.
Wall Street analysts have been boosting 2018 earnings forecasts for U.S. companies at a very fast pace since Trump signed the tax bill into law. Those projections are boosting the stock market.
Is there a downside?
Maybe. Some skeptics believe that the record-breaking rise of the Dow could lead to a painful fall back to earth.
“There is a danger that the U.S. stock market could accelerate so quickly that it decouples from the economic fundamentals most analysts think currently underpin it,” said Jacob Deppe, head of trading at Infinox. “The fear is the higher stocks climb now, the further they may have to fall later.”
Want to leave a tip?
We answer to you. Help keep our content free of advertisers and big tech censorship by leaving a tip today.
Want to join the conversation?
Already a subscriber?
Aaron Colen
Aaron is a former staff writer for TheBlaze. He resides in Denton, Texas, and is a graduate of the University of Oklahoma where he earned his Bachelor of Arts in journalism and a Master of Education in adult and higher education.
more stories
Sign up for the Blaze newsletter
By signing up, you agree to our Privacy Policy and Terms of Use, and agree to receive content that may sometimes include advertisements. You may opt out at any time.
© 2024 Blaze Media LLC. All rights reserved.
Get the stories that matter most delivered directly to your inbox.
By signing up, you agree to our Privacy Policy and Terms of Use, and agree to receive content that may sometimes include advertisements. You may opt out at any time.