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 MarketWatch.com, 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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