The Dow Jones Industrial Average has for the first time closed above the 17,000 mark as confidence from investors grows in the world wide economy. The stock index for the US which consists of the biggest companies in business increased by 92 points to close for the day at 17,068.
A report which stated that in June there were 288,000 jobs added by the US economy had a positive effect leading investors to push shares higher. Moreover, low interest rates have played their part in the up rise as that has led to investors pouring in money. Among other US indexes to have increased is S&P which saw new heights this year. The Dow recently closed at its 13th highest for the year while on the other hand the S&P 500 reached a 24th highest close in 2014.
Slowly but surely
An increase in acquisitions and mergers as well as a string of other positive economic news has fired up investors and earned their confidence. All in all making Wall Street a much brighter place to be. The latest positive job figures to be released in the US was the icing on the week for global positivity along with China’s manufacturing productivity reaching a six month high.
Benedict Willis who works for Princeton Securities stated in an interview “the economic data we continue to get is not exceptional, but it is still positive” making his position on the New York Stock Exchange a touch more comfortable.
The worry which many investors had earlier in the year was that the rising stock prices would not be supported by actual growth in the economy. However, Mr Willis stated that so long as the economic figure continue to rise then that should be sufficient to support investor confidence and not raise any concerns. He further expressed his personal confidence in saying that he expected the stock markets to continue rising.
While on this subject, it is important to give credit to the Federal Reserve who have heavily influenced the pouring of money into stocks over the past year and a half by keeping interest rates at rock bottom. The Fed has made tremendous efforts to keep the rates at record lows and have succeeded in their mission which was to encourage banks to provide loans in order to stimulate the economy and with it to progress growth.