Thursday, 26 January 2017

US stock indices at record highs as Dow breaks 20,000

Stock markets were buoyant on Wednesday.

US stock indices rose to record highs, with the S&P 500 and Dow Jones Industrial Average both climbing 0.8 percent, the latter breaking the 20,000 level for the first time.

The STOXX Europe 600 jumped 1.3 percent, its biggest one-day percentage gain since 9 November last year, to its highest close in more than a year.

In Asia, the Nikkei 225 led gains, surging 1.4 percent after setting a 7-week closing low on Tuesday.

“It’s psychologically huge,” said Neil Wilson, senior market analyst at ETX Capital, of the Dow breaking the 20,000 level.

“Dow 21,000 will soon become the next media obsession,” said Quincy Krosby, market strategist at Prudential Financial.

Others see improved earnings outlooks as the main factor behind the rally.

“What’s happening with earnings is driving gains, not just in the U.S., this is a global rally,” said Ryan Detrick, senior market strategist at LPL Financial, a view echoed by Kim Forrest, senior analyst and portfolio manager at Fort Pitt Capital Group.

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