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Dow Hits Record-High of 20,000 As Trading Opens on Wednesday

Optimism about Trump's economic policies have helped Dow to climb

Traders work on the floor of the NYSE
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City / Reuters
January 25, 2017

The Dow Jones Industrial Average hit a record-high of 20,000 as trading opened on Wednesday morning.

According to CNBC, the Dow has risen 9 percent since Election Day and expectations about President Trump’s economic policies have helped the Dow to climb.

"Stronger U.S. economic data and optimism about Trump's business policy, among other factors, have pushed not only the Dow, but also the other major averages and small-cap stocks higher in that time," the article states.

Expectations that Trump will lower the corporate tax rate, roll back regulations, and increase infrastructure spending have investors believing that market enthusiasm will continue during Trump's time in office.

"The market is perceiving this as a business-friendly administration that is coming into office for the next four years," Bruce Bittles, chief investment strategist at Baird, told CNBC. "It wouldn't take much to give earnings a real boost. I think that's where the market is coming from and I think it will continue."

While many investors expect more growth, they also warn of risks in the short-term.

CNBC continued: "Risk factors like rising valuations, a potentially strengthening dollar and climbing interest rates could knock markets back down in the short term, experts said. Stocks have endured a sluggish period since mid-December after the initial post-election rally wore off."