Dow Leaps on Tax Cut News

On Thursday, November 30, as the Republicans appeared to be closing in on 50 votes to secure the promised tax cuts that should help corporate earnings, the Dow leaped 331 points, a 1.4 percent increase to cross the 24000 (24272) threshold in a near-record 30 trading days. It represents a 5900 point increase since the November 2016 presidential election, or a 32 percent increase and 23 percent year-to-date uptick. It is the fifth 1000-point increase since that election.

A spate of good news for investors accompanied the latest surge, including a growing economy (3% recent quarterly GDP), upbeat consumer confidence, relaxation in regulations including for banks, a new Fed chief promising more steady monitory policy, on oil a sweet spot and big technology companies promising more profit making applications and innovations.

Little has changed since the Dow crossed the 23000 on October 18, 2017:

“The Dow is benefitting from a world that appears in a synchronized recovery with Europe, China and Pacific Rim countries all experiencing steady growth after the lingering Great Recession. Federal Reserve is holding calm, oil has stayed in a tight range and earnings are still good. No doubt, a correction is coming, but as of today, the market looks slated for more growth.”