Dow Reaches 26K, Sets Record with Speedy Rise
Investors got some good news today as the Dow Jones Industrial Average reached another record high, hitting 26,000. What makes this particular accomplishment noteworthy is that it’s only been seven trading days since the Dow surpassed 25,000. This marks the fastest 1,000 point gain ever, easily besting the previous record of 23 days set earlier this month. Prior to that, a record of 24 days was set in May of 1999 and tied in March of last year.
As CNN Money notes, 1,000 point jumps are easier to attain at these levels than at previous ones. Still, with this latest surge, the Dow is up more than 40% since the election of President Donald Trump. However observers seem to be split on whether these gains are ultimately a good thing and on what’s to come.
In one corner, Ed Yardeni has called what the market is currently experiencing a “melt-up.” As he explained to clients, “I’m not a big fan of melt-ups. They tend to be followed by meltdowns.” On the other hand, Art Hogan attributes this ramp up to the recently-signed GOP tax plan — which cut the corporate tax rate among other things — and insinuated this was just the beginning. Hogan told CNN Money, “We’re just starting to see Corporate America tell us what a lower corporate tax rate means to the bottom line. We shouldn’t dismiss that.”
While the question of whether these bullish gains will last or whether you may be headed for a major pullback are open for debate, the current rally has been an impressive one. As a result there are likely plenty of happy investors who have ridden this wave over the past year — we’ll just have to wait and see when that wave will start to crest.