The U.S. economy has continued to soar under President Donald Trump, with the Dow Jones Industrial Average eclipsing 23,000 on Tuesday for the first time in U.S. history.
The Dow, the oldest U.S. stock market equity index, hit just over 23,000 in another record-setting benchmark for the market and U.S economy.
As of Tuesday afternoon, the Dow had dropped under that benchmark, but was still up for the day
According to Market Watch, health care shares rising 1 percent and likely played a role in the Dow jumping to another record.
The Dow had previously logged 48 record closes in 2017, a height that hadn’t been achieved in a single calendar year since 2013.
Bank earnings from some of the largest health care companies in the industry have also been credited for giving the stock market another bump.
The dollar also saw its value increase after Stanford University’s John Taylor, the famed economist behind the “Taylor Rule,” met with Trump last week to discuss the markets and jobs.
The meeting likely played a role in the value of the dollar rising, given Taylor is reportedly being considered to become the next chairman of the Federal Reserve, according to Bloomberg.
Karyn Cavanaugh, senior market strategist at Voya Financial, said the rising stock market in the U.S. has been the driving force behind global growth.
“There is no euphoria among investors yet as bond flow are strong while there is still enough skepticism about stock gains. Instead, the market is climbing thanks to global growth that’s been driving earnings,” Cavanaugh said.
“As long as we continue to see European and emerging-market economies grow, there is no reason for corporate earnings not to rise as well and support the market,” she added.
The stock markets have reacted favorably since Trump won the 2016 presidential election over former Secretary of State Hillary Clinton.
Since November 2016, the Dow has jumped about 28 percent, the S&P 500 index has increased nearly 20 percent, and the Nasdaq Composite Index has climbed roughly 27 percent, as previously reported by Western Journalism.
Should Congress pass tax reform, which Republicans would like to happen by the end of the year, removing restrictions and reducing taxing could increase the stock market’s index even more than it already has.
Image and Content: Western Journalism