Thanks, Donald Trump.
After flirting with the 20,000 threshold for well over two months, the Dow Jones industrial average, a collection of 30 major U.S. companies, finally breached the mark at Wednesday’s market open.
The Dow has surged since President Donald Trump was elected in early November, as investors expected the president’s increased spending plans and deregulatory stance to boost the stock markets.
Some have argued that the quick run up in stocks could become a problem for President Trump because the economy doesn’t seem to have improved as much as the market. What’s more, stocks were considered to be expensive, given that corporate profits have fallen lately. That could be setting up the market for a correction.
The rally has largely been led by financial giants, including Goldman Sachs (GS), a bank where several of Trump’s advisors are alumni. Several of Trump’s cabinet picks, including his potential Treasury Secretary Steven Mnuchin, have leaned toward deregulating the financial sector and pulling back on the Dodd-Frank Act.
Goldman has risen 29% since the elections, while the Dow has risen nearly 9% in comparison.