Tuesday marked a historic day as the stock market welcomed us home with a celebratory rally and the Dow Jones Industrial Average and Nasdaq hitting 18,000 and 5,000 points respectively for the first time ever. This comes as a positive sign for the U.S. economy and confirms that the recovery is strongly underway.
The Dow Jones Industrial Average (DJIA) saw a rise of over 1,000 points – an unprecedented increase since its closing at 18,068 points. This is the first time the Dow has ever crossed the 18,000 mark and it is all the more impressive due to the sight of a 20% increase since May.
The Nasdaq has also made history reaching the 5,000 level. This technology packed index gained 7% in just five days, soaring from 4,717 points on Wednesday to closing 5,023 on Tuesday.
The sharp increases have provided ground for optimism in the financial world. There is now hope that the U.S. can maintain its current positive momentum.
One particular possibility is that, due to the extended Thanksgiving Day break, companies may have already started to purchase Christmas presents for employees and investors, as well as stocking their inventories, resulting in the rapid rise of stock prices.
The impressive rise in the stock markets is also attributed to recent gains in global markets. The strong movements of European markets, such as Germany and France, may have increased trading volume in U.S. markets, which helped push up prices.
Overall the stock market rally serves as a warm reminder of America’s resilience and economy. Although the stock market rejoices in today’s news, it’s still important to note that the market is unpredictable and any rise or fall should always be taken with caution.