Dow smashes a milestone by shooting past 34K-mark

 

The 30-share large cap index of the US market – Dow Jones Industrial Average (Dow30) – surged past the 34,000-mark for the first time on Thursday, as global equities continue to rally.

Although the benchmark opened almost flat at 33,788.53, it soon gained momentum as key companies came up with strong earning numbers, which showed a strong economic recovery.

Within an hour of trade, the Dow 30 breached the 34,000 mark and went on to touch an intra-day high of 34,068.73. It, however, closed at 34,035.99, 305.10 points (0.90%).

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The broader index S&P 500 also closed at the record high levels -- gaining 1.1% to close at 4,170.42. The Nasdaq Composite gained 1.3% to close at 14,038.76 – just 60 points shy of the historical highs touched in February.

The markets were propelled by three factors: strong earnings, retail sales surge, and better than expected job data.

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Key companies like Goldman Sachs (NYSE:GS) and JP Morgan Chase & Co. (NYSE:JPM) beat the street estimates on earnings.

On the other hand, the March 2021 stimulus package by the Biden administration seems to have helped as consumer spending has gone soaring in the month: retail spending surged 9.8%.

On the jobs front, the US Labour Department data revealed that the fresh unemployment claims have come to a 12-month low in March, as the country saw just 576,000 fresh jobless claims – 19% lesser than the street estimates.

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