The Dow Jones Industrial Average passed 25,000 on Thursday morning, representing a milestone of the fastest 1,000-point gain in the index's history, the Wall Street Journal reported.
In 2017, the Dow hit five of these 1,000-point milestones, which is the most it has seen in the history of the index.
"Faster economic growth around the globe and improving sentiment from both consumers and businesses—both of which were elusive for many years since the financial crisis a decade ago—have helped power this rally in recent weeks," the article states.
Kate Warne, an investment strategist at Edward Jones, said that a year ago many investors believed stocks would fall. This year she has seen a shift in sentiment.
"The turn of the calendar year doesn't change the dynamics of economic growth and earnings growth," Warne told the Journal. "We shouldn't be surprised that markets continue to move higher because fundamentals continue to be positive and investor optimism is actually improving rather than investors becoming more cautious."
The Federal Reserve also seems optimistic about a rebounding economy. In the minutes from the December meeting, the Fed expressed that it may continue rate increases.
"Investors also are looking to fresh data on the economic front, with U.S. job numbers due Friday," the article states. "Economists polled by the Wall Street Journal expect payrolls grew by 180,000 last month after an increase of 228,000 in November."
Published under: Economy