Dow Jones Industrial Average hit 27,000 for the first time in its history on Thursday. The S&P 500 index also hit another all-time high.
President Trump welcomed the good news, tweeting: “Dow just hit 27,000 for first time EVER!”
Dow just hit 27,000 for first time EVER!
— Donald J. Trump (@realDonaldTrump) July 11, 2019
In January 2018, the Dow Jones first closed above 26,000, so it has taken about a year and a half to add another 1,000 points to the chart.
The record high followed with the news that a possible rate cut might be implemented at Fed’s July 31 meeting.
Federal Reserve Chair Jerome Powell said: “We’re learning that interest rates — that the neutral interest rate — is lower than we had thought.” And he continued, “I think we’re learning that the natural rate of unemployment is lower than we thought. So monetary policy hasn’t been as accommodative as we had thought.”
Powell stressed that the Fed is prepared to cut interest rates to support the economy, raising hopes that the first reduction in its key policy rate in a decade could happen later this month, according to AP.
He noted, “Uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.”
Rising stocks from drugstore chains and health insurers added to the momentum after President Trump dropped a proposal to eliminate drug rebates. Cigna surged 9.2%, CVS Health gained 4.7%, UnitedHealth climbed 5.5% and Anthem rose 5.5%.
The Dow gained 227.88 points for the day, or 0.8%, closing at 27,088.08. The S&P 500 rose 6.84 points, or 0.2%, to 2,999.91. The index set three straight record highs last week. The Nasdaq composite gave up an early gain, sliding 6.49 points, or 0.1%, to 8,196.04. The Russell 2000 index of smaller company stocks dropped 7.13 points, or 0.5%, to 1,557.92.
Includes the reporting from The Associate Press.