Dow Jones Industrial Average Crosses Above 17,000 for The First Time Just Before The American Independence Day
The Dow Jones Industrial Average, which is a stock index comprising of some of the biggest global companies has crossed the 17,000 mark for the first time
Thursday’s trading showed shares rapidly rising up, as a result of high investor confidence, which was largely due to the positive job report which showed that US economy had added 288,000 jobs in June alone. This report clearly showed that employers had added more employees than that predicted for June.
The fact, that interest rates have been low has also caused investors to invest money in to stocks, to earn better return.
European Central Bank’s preparation to disclose details of its stimulus plans can also be attributed as another reason.
Jim Paulsen (Chief Investment Strategist at San Francisco-based Wells Capital Management) described it as a pretty strong report and said in a phone interview “This is stuff that is going to lead to upward revisions of second quarter growth rates and it starts off the third quarter in a real positive momentum place.”
Janet Yellen, Fed Chair was right when he said last month that accommodative monetary policy, rising property and equity prices and the improving global economy should lead to above-trend growth. Since December 2008, The Fed has kept its benchmark rate near zero.
Earlier, we also saw Standard & Poor’s 500 index reaching new heights.
Today’s news comes as a blessing for the US, which is all set to celebrate its 238th independence day.