October 18, 2017 8:42 pm
Updated: October 20, 2017 10:12 am

Dow Jones hits record high, continues surge since Donald Trump was elected

ABOVE: In an interview with CBS this morning, Speaker of the House Paul Ryan said he's "excited" to move forward on President Trump's tax plan, which he is confident will pass into law.

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While the Dow Jones has been on an upward tick for years now, it has been soaring since U.S. President Donald Trump won the election as evidenced by Wednesday’s record-breaking finish above 23,000.

Since last fall’s election, the number has climbed by over 4,500 points.

Here at home, the TSX has seen much more conservative growth having risen around 1,000 points in the 12 months.

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READ MORE: Dow Jones hits an all-time high at 22,000, driven by Apple stocks

Solid earnings, stronger economic growth and hopes that Trump may be able to make progress on promised tax cuts have helped the market rally this year.

“The stock market is soaring to record levels, boosting pensions and retirement accounts for hard-working Americans. Their values are going up every single day,” Trump said Wednesday.

The Dow Jones Industrial Average rose 160.16 points, or 0.7 percent, to end at 23,157.6, the S&P 500 gained 1.9 points, or 0.07 percent, to 2,561.26 and the Nasdaq Composite added 0.56 point, or 0.01 percent, to 6,624.22.

WATCH: Trump says tax reform plan will feature only three separate tax rates

“Today the catalyst is clearly IBM … which appears to have turned the corner. It gave the Dow the boost to stay over 23,000,” said Quincy Krosby, chief market strategist at Prudential Financial told Reuters.

Despite Republicans being in control of all three houses of government in the U.S., many are concerned that they will never be able to pass the legislation that Trump and other prominent lawmakers have promised.

Treasury Secretary Steven Mnuchin spoke on a podcast Tuesday and issued a ‘sky is falling’ warning that if the government is unable to pass tax reform, the Dow Jones will crash.

“There is no question that the rally in the stock market has baked into it reasonably high expectations of us getting tax cuts and tax reform done,” Mnuchin stated during a Politico podcast released Wednesday. “It also has baked into it optimism on regulatory relief which they’ve begun to see and there’s expectations [of continuing].”

READ MORE: Nasdaq data glitch causes Apple, Google and other stock prices to go haywire

Of course, many predicted the market would crash if Trump was to win the 2016 U.S. election.

Trump’s tax plan would deliver up to $6 trillion in tax cuts to businesses and individuals.

The tax framework, developed in secret by a select group of senior Republicans known as the Big Six, calls for cutting the corporate tax rate to 20 percent from 35 percent and creating a new category for pass-through income earned by partners and sole proprietors, which would be taxed at 25 percent, instead of the 39.6 percent top individual rate currently paid by some.

 

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