The Dow Jones Industrial Average soared above the 20,000 milestone for the first time this morning on the heels of earnings. The average continued to rise to about 20,050 at about 12:25 this afternoon.
“It’s a milestone the market has been trying to break through for a few weeks now,” said Matt Petrozelli, executive vice president and chief operating officer of Valley National Financial Advisors in Hanover Township, Northampton County. “I think it proves there’s renewed optimism in the economy. The number itself is not as important to the long-term investor as the reasons behind it.”
These reasons include the reforms that President Trump’s administration is striving to make, which were marked by executive orders he signed this morning that include national investments in infrastructure and pipeline construction.
“I think the new administration has wasted no time in accomplishing those,” Petrozelli said. “They’ve gone after some infrastructure concepts, they are making progress toward construction, which will hopefully add jobs.”
The new administration’s stance on tax reform is another key reason behind the leap in Dow Jones points this morning.
“They’ve been discussing tax reform at the corporate and personal level,” Petrozelli said. “That boils down to companies saving money on taxes and the rollback of government regulations and corporate tax reform.”