The stock market welcomed us home in a big way this month with the Dow Jones Industrial Average hitting an all-time high as investors, both domestic and foreign, poured money into U.S. stocks.
The strong performance was due to a number of factors. First, the U.S. economic recovery, as evidenced by the string of positive economic reports, has helped increase investor confidence. Second, corporate tax cuts implemented in December of 2017 decreased effective tax rates, as well as stimulating capital investment. Third, a successful U.S.-China trade deal signified a de-escalation in trade tensions and spurred investor optimism.
The Dow closed the month at an all-time high of 26,719. Similarly, the S&P 500 index closed at 2,970 points, also at an all-time record, while the NASDAQ Composite Index set a new intraday record, closing just marginally below the 8,000 point level.
Not only did stocks in the major indices experience a rally, certain sectors have been particularly strong. Material stocks such as DowDupont and Ecolab have seen price surges of 8.66% and 10.34% respectively in the past month alone. In the technology sector, Microsoft, Intel and Ciena have all witnessed their stocks rise by more than 11%.
This robust performance is a sign of investor optimism and a greater propensity to invest in U.S. stocks. With interest rates holding steady, further economic growth expected and volatility showing signs of reducing, the outlook for stocks is looking decidedly bright.
Overall, the stock market has welcomed us home in a big way this month, offering investors the chance to capitalize on this opportunity and benefit from the impressive performance so far. With a host of favorable fundamentals and investor confidence buoyant, this could just be the start of an ‘everything rally’.
