Thursday, 2 March 2017

Dow breaks 21,000 as investors like Trump Congress speech

Markets jumped on Wednesday after a well-received address to Congress by US President Donald Trump on Tuesday.

In the US, the Dow Jones Industrial Average surged 1.5 percent to close above 21,000 for the first time ever. The S&P 500 also hit a record high after jumping 1.4 percent.

Earlier, the STOXX Europe 600 jumped 1.5 percent to its highest close this year while the Nikkei 225 rose 1.4 percent.

After the string of record highs in US stock indices, Quincy Krosby, market strategist at Prudential Financial, is concerned that “markets are extended and overbought”.

“But for now, it seems that investors are content with the reasonable tone of the president, while impending rate hikes are seen in the context of an improving economy,” he said.

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