MP Materials seals mega rare-earths deal with US to break China's grip
Dow Jones passes 20,000 for first time
5:42 CAT | 25 Jan 2017
The Dow Jones Industrial Average traded above 20,000 for the first time at the start of trading on Wednesday.
US share prices have been boosted by hopes that the economic policies of the new US President Donald Trump will boost his country’s economy.
The index of leading US shares rallied after Mr Trump’s election win and was close to breaking 20,000 on 6 January.
It fell back a bit but rose again after Mr Trump’s signing of several executive orders since his inauguration.
Shortly after opening, the Dow was up 93.38 points at 20,006.09.
The other two main US share indexes also showed gains. The S&P 500 was 10.09 points higher at 2,290.16, while the tech-heavy Nasdaq was up 36.74 points at 5,637.70.
Tim Ghriskey, chief investment officer of financial management firm Solaris Group in New York, said: “There is a real belief that [Mr] Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought.”
Neil Wilson, senior market analyst at London brokers Capital, said: “It’s psychologically huge and, after a bit of pullback ahead of the inauguration, really confirms that the ‘great rotation’ from bonds to stocks is definitely upon us.
“Fears about protectionism are running second to optimism about inflation and growth – for now at least.”
Source: BBC
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