For some time now, 20,000 has been an interesting number for the Dow Jones Industrial Average. While there has been nothing physically blocking the index from hitting this mark, it is definitely a psychological hit point for many investors. Nonetheless, this morning, DJIA has crossed over that line. Ultimately, the primary cause of the rally leading to the symbolic break over 20,000 is Donald Trump. Today, we'll talk about why Trump is the primary reason for the Dow making it over 20,000 and what investors should be watching for ahead.
Trump Pushes The DJIA Over The 20,000 Mark
For some time now, investors have been watching the Dow Jones Industrial Average and speculating with regard to when it will break the 20,000 mark. Well, that has been done, and most experts are pointing to Donald Trump as the reason for the move. So, how is Trump responsible for the DJIA breaking this psychological barrier?
The answer is relatively simple. Throughout his campaign, Donald Trump made it clear that he intends to reduce taxes on corporations, give United States companies a competitive advantage in the United States, and more. Ultimately, Trump has vowed to make the US economy better, and if he is successful, companies will thrive. At the end of the day, his plans are great for the DJIA.
What Trump Has Done In His Early Days To Refuel The Bull Run
Just before President Donald Trump took office, what became known as the Trump Rally paused. The Dow Jones Industrial Average, along with the NASDAQ and S&P 500 reversed their upward directions as investors worried about whether or not Trump would follow through with his promises. That's no longer a question.
At the moment, the DJIA, S&P, and NASDAQ are all soaring, running up with the Trump Rally once again. The reason for this has to do with what Trump has done in his early days in office. In just a couple of working days, he has signed several executive orders surrounding trade, taxes, and the use of US resources. These orders are showing investors that Donald Trump means business, refueling the excitement in the market surrounding his presidency.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching the DJIA incredibly closely. In doing so, we'll be watching Trump closely. At the end of the day, the run in the market is being caused largely by the fact that Donald Trump is following through. If this continues, we could see more incredible gains.
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