Dow Breaches 21000 for First Time Ever After Trump’s Address to Congress

A trader wearing a Trump hat works at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., January 20, 2017. (PHOTO: REUTERS)

The Dow Jones Industrial Average (INDEXDJX:.DJI) breached 21000 for the first time ever in history just one day after President Donald J. Trump addressed a joint session of Congress. As of 9:39 AM EST on Wednesday morning, the Dow climbed +196.00, or 0.94% to 21,008.24.

Since the U.S. presidential election in November, the Dow has added more than 3000 points. The Dow’s 12-session winning streak that ended Tuesday ahead of the speech was the longest since 1992 and created nearly $3 trillion in wealth, more than any other similiar period in history. Investors were cautiously looking for more direction from the president, and early trading seemingly indicates they are more than happy with what they’ve heard.

In his optimistic “Renewal of the American Spirit” speech, which struck a balance between optimism and reality, the president said the nation must have an “honest” conversation about the challenges that must be faced, such as “the worst economic recovery in 65 years” and the fact his predecessor added “more debt than the other previous presidents combined.”

“We must restart the engine of the American economy” to meet these challenges, President Trump said.

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“Right now, American companies are taxed at one of the highest rates anywhere in the world. My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone,” he added. “At the same time, we will provide massive tax relief for the middle class. We must create a level playing field for American companies and workers.”

President Donald J. Trump addresses a joint session of Congress on Tuesday Feb. 28, 2017.

Tapping former Republican President Dwight D. Eisenhower who implemented what he called the “last truly great national infrastructure program,” President Trump called for a hybrid infrastructure plan supported more by Democrats than Republicans.

“The time has come for a new program of national rebuilding. America has spent approximately $6 trillion in the Middle East, all this while our infrastructure at home is crumbling,” he said. “With this $6 trillion we could have rebuilt our country–twice. To launch our national rebuilding, I will be asking Congress to approve legislation that produces a $1 trillion dollar investment in the infrastructure of the United States – financed through both public and private capital – creating millions of new jobs.”

Since taking office, he has met some one dozen times with business leaders and signed two rounds of executive orders (here and here) aiming to significantly scale back regulation on small and large businesses. In anticipation of these orders, as well as the signing of regulatory and tax reform bills passed by a Republican Congress, U.S. markets have boomed. The Dow was as high as  21,016.34 before pulling back slightly and remaining above 21000.

On Nov. 22, 2016, the Dow breached 19,000 for the first time in history and, subsequently, it closed above the historical range for the first time ever.

Despite the same dire predictions the British heard before the Brexit vote, traders in U.S. markets ended their best 5-day period since 2011 on Jan. 6. It topped 20,000 and closed above it for the first time ever in U.S. history on Jan. 25.

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