Wednesday, March 1, 2017

It’s all hunky-dory for the US stocks with positive knock-on effects for Canada

Just a week after we last spoke of the Trump rally on the US stock market, Donald Trump himself inspired the new leg of growth with his speech to Congress on Tuesday evening, February 28th. He actually mentioned the market rally just 8 minutes into his 1.5 hour long speech when he said that the stock market has gained almost $3 trillion in value since the election on November 8.
In the first 30 minutes of trading on Wednesday, the Dow Jones Industrial Average index jumped by more than 1% and exceeded a psychological level of 21,000 points. It took the index only 35 days to add 1,000 points which, according to, was the second-fastest 1,000 point gain in history.
Dow Jones Industrial Average over 5 days

Donald Trump had several promises in his speech that confirmed investors’ bullish expectations: a "massive tax relief", overhaul of the Obamacare, a $1 trillion spending on infrastructure, and more spending on the military. Although those promises were quite vague and lacked detail, it was enough to ignite the stock market higher.
Although some of Donald Trump’s promised policies are protectionist in nature, his speech lifted many foreign stock exchanges as well. The main Canadian stock index, S&P/TSX Composite Index, was up almost 1% in the early trading on Wednesday.
Ukrainian Credit Union Limited

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