The Dow Jones Industrial Average jumped past 25000 for the first time Thursday, continuing a rapid ascent in what would be the fastest 1,000-point gain in its history if it closes above that mark.
The blue-chip index, which heavily weights industrial giants like Boeing Co. and Caterpillar Inc., was recently up 143 points, or 0.6%, at 25066.
Thursday’s moves marked the latest feat for a rally that has repeatedly wrong-footed skeptics and sent stock indexes around the world to multiyear highs. The Dow industrials hit five thousand-point milestones last year, its most such records in its 120-year history.
Faster economic growth around the globe and improving sentiment from both consumers and businesses—both of which were elusive for many years since the financial crisis a decade ago—have helped power this rally in recent weeks.
The Dow industrials performed well in 2017, rising 25% as investors bet on solid corporate earnings and a pickup in economic growth around the world. However, for much of the year energy shares lagged behind most other sectors, such as technology, limiting some of the blue-chip index’s upside. But recently, the price of oil has risen above $60 a share, providing a boost to oil-and-gas companies.
Shares of Chevron surged in the second half of the year, with the oil producer’s stock rising 21% over the past six months, nearly double its gains for the year. Exxon Mobil has climbed 6% in the past three months despite finishing 2017 lower.
“The risk sentiment is absolutely roaring right now,” said Richard Benson, co-head of portfolio investments at Millennium Global Investments. “As an investor, it’s easy to develop a fear of missing out.”
The gains at the start of this year have spread across the world.
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Source: Wall Street Journal