Trump’s optimistic tone in his Tuesday night speech and a hawkish Fed sparked the 300 point Dow push, surging to 21,000 points.
Stocks have gone through the roof since November, with the Dow index surpassing 19,000, 20,000 (and now 21,000) points since Trump’s Election Day. President Trump’s plans to cut taxes, loosen regulations, and increase fiscal spending combined with a seemingly stronger U.S. economy have had a more-than-bullish effect on the markets.
The Dow rose over 304 points (1.5%) on the first day of March. The last time a daily gain of this magnitude occurred was the day before President Trump’s surprising election. General investor willingness to venture into riskier bets, such as currencies and commodities, have resulted in lower Treasury bond prices and higher yields. Higher yields carried great benefit for the economy, as banks thrive on such gains. Bank of America [stock symbol=”BAC”] rose 3.5% and J.P. Morgan Chase & Co. [stock symbol=”JPM”] rose 3.2%.
In the Federal Reserve, Janet Yellen’s ally William Dudley, the President of the New York Fed, expressed serious interest in raising rates given the economy’s current climate. We will hear more about this on Friday, along with February non-farm payrolls.