What trade war? The Dow just soared to its first record high since late January.
The milestone shows that Wall Street is mostly unfazed by the escalating trade clash between the United States and China. The S&P 500 also notched an all-time high on Thursday.
“The market is showing incredible strength,” said Paul Hickey, co-founder of Bespoke Investment Group.
Stocks spiked late last year and in January after Republicans enacted a sweeping corporate tax cut. The euphoria sent the Dow soaring from 25,000 to 26,000 in just seven trading days.
But that rally crumbled in dramatic fashion, punctuated by two single-day 1,000-point plunges. Wall Street was overcome by fears about inflation and spiking interest rates.
“Sentiment had gotten really out of hand. The pullback was a reality check. The lack of a new high for so long has let the market play catchup to fundamentals,” Hickey said.
If the Dow closes above 26,616.71, it will mark the 100th record close for the index since President Donald Trump’s election in November 2016, according to S&P Dow Jones Indices.