US stocks hit fresh highs on Wednesday, with the Dow Jones Industrial Average ending above the 20,000 level for the first time, amid optimism that Donald Trump’s policy initiatives will breathe new life into the world’s largest economy.
The Dow raced past 20,000 when the market opened and held on to its gains throughout the session, finishing up 0.8 percent at a record 20,068.51, the Wall Street Journal reports.
The S&P 500 and the Nasdaq Composite also reached fresh highs.
As Trump moved to cut regulations and promote infrastructure projects during his first week in office, investors were betting that the new US president will follow through with business-friendly plans like cutting taxes, the Journal noted.
Applause, whoops and cheers erupted on the floor of the New York Stock Exchange as the market closed.
The Dow industrials notched their first close above 19,000 on Nov. 22 amid the post-election rally that has sent the index up more than 9.5 percent since Nov. 8.
Even as indexes soar to unprecedented highs, many investors urged caution.
Interest rates are still relatively low, reflecting ongoing sluggishness in the global economy. Also, stocks are expensive compared with their historical levels, increasing the chances of a pullback.
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