As of January 20, 2017, The Stock Market hit an all-time high reaching up to 20,000 points. The company Dow Jones or “Dow Jones & Company” which is one of the largest business and financial news companies in the world took the honor of reaching this milestone.
Dow was actually the creator of The Wall Street Journal, which is a business focused international newspaper based in New York City.
Many people are not actually aware of what the stock market is. It can be defined as a market which allows public held companies to sell their “stocks” or a share of their company. A share means that when you buy one, you are buying a small piece of the company.
The United States economy added 156,000 jobs in December, according to data from the Bureau of Labor Statistics. Economists polled by Reuters expected an increase of 178,000.
The Dow Jones industrial average rose 64.51 points, or 0.32 percent, to close at 19,963.8, with Nike leading advances and Verizon the top decliner.
Kate Warne, investment strategist at Edward Jones feels that this increase in stocks was something to be expected.”The Dow has been approaching 20,000 for several weeks now. Strong jobs news, combined with optimism about the incoming administration’s policies is lifting stocks,” she said
Much of this economic revival has been placed on the newest president Donald J. Trump. Stocks and Treasury yields have skyrocketed since Trump’s victory.
Kellyanne Conway, the campaign manager to president Trump, tweeted out to the public that the result of the stocks was due to the “Trump effect”.
One way or another Trump’s policies, and not just the economic ones are bound to affect the financial markets heavily. For instance, the Financial Times-Stock Exchange or the FTSE, 100 closed down 1.2% at 6827.98, having gained 1% on Wednesday after Trump’s presidential victory was confirmed.
Trump might even affect the economy even more with his plans to spend on infrastructure. He stated in his victory speech that he his ready to spend to make the country better.
“We are going to fix our inner cities, and rebuild our highways, bridges, tunnels, airports, schools, hospitals,” Trump said. “We’re going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it.”
During Trump’s candidacy, he promised to spend heavily on programs that would create jobs, and that focus on transportation, water, telecom, and energy.
Trump also exhorted that he would be cutting down on across-the-board taxes and corporate taxes down from 35 percent all the way down to 15 percent.
During the early stages of Trumps run for the presidency many of the economists feared that Trump’s ideas on spending would further increase the nation’s national debt.
Nonetheless, no matter what happens in the nation’s economy or The Stock Market, there is definitely going to be a change in the next four years.
“We assembled here today are issuing a new decree to be heard in every city, in every foreign capital, and in every hall of power. From this day forward, a new vision will govern our land. From this day forward, it’s going to be only America first, America first,” said Trump.