Just ahead of US President’s budget announcement, the Dow Jones closed Monday’s trading session at a record high in its 12th day running.
Dow Jones At Record High Winning Streak Not Seen In 30 Years
The Dow Jones saw stocks rise following President Trump’s announcement on big infrastructural spending and cuts.
In its 12th consecutive day of exemplary performance, this is the best the stock index has performed in thirty years.
According to market observers, the impressive performance on Wall Street could be attributed to anticipation that Mr. Trump would announce positive news on his tax and spending plans as he speaks to Congress on Tuesday.
The Dow Jones is among the top three main stock indexes in the US. On Monday, it closed at 20,837, a sheer 15 points higher from the previous day of trading.
Prior to his speech, the US president said that he would make a ‘big statement’ on infrastructure in his speech to Congress. He also added that he would make it easier for states to invest in infrastructure.
Mr. Trump further said that he was looking to increase defense spending by up to $54bn, which would be a 10% increase from the previous budget.
In addition to increasing spending on infrastructure, Mr. Trump earlier promised to reduce the taxes US businesses pay.
Speaking to the BBC, Peter Jankovskis, senior researcher at Oakbrook Investments said, “Currently, anytime he speaks of those plans, there is a leg up in the market and when he is not talking the market still has enough momentum to keep going forward.”
Other than the Dow, the S&P 500 climbed 2 points higher to close at 2,370 while the Nasdaq Composite of technology stocks edged 17 points to close at 5,862.
Shares in the financial, healthcare and energy sectors saw the highest increases and will continue to benefit if the policies proposed by Mr. Trump boost economic growth.
In his highly anticipated speech, the US president is looking to increase spending on defense and to make deep cuts in other areas including foreign aid.
Although Republicans have been adamant about the need to reform the welfare system, Mr. Trump has left this area largely untouched.
Gearing up for presentation of his budget to Congress in May, the president engaged in agency-wide consultations.
Before May, he would need to determine what tax reforms are needed and which areas will have to contend with spending cuts.
Monday morning Trump said, “We are going to do more with less, make the government lean and accountable.”
He asserted that the budget would primarily focus on economic development, safety and the military.