Dow Reaches First Record High Since Mid-July Amid Impeachment Probe

(Official White House Photo by Shealah Craighead)

President Donald J. Trump talks with reporters. (Official White House Photo by Shealah Craighead)

For the past few months, the Dow hasn’t been as high as many investors would like it to be. After several drops in the market this past year, the Dow rose over 100 points on Monday, hitting its first all-time high since July. Last week the S&P 500 also hit a new record [1] and President Trump tweeted encouragement to investors before the stock market opened: “Stock Market hits RECORD HIGH. Spend your money well!”

The Dow

The Dow hit an all-time high on November 4, following in the S&P’s footsteps, which also rose to a new high last week. The S&P has climbed over 35 percent since Trump became president in 2017, thanks to a tax overhaul that happened in 2018, the market has steadily been rising. However, his trade war with China over the past year has caused many investors to become trepidacious with their spending.

After Trump recently said that the U.S. and China had come to a “very substantial phase one” agreement- which is expected to be signed later this month- stocks rose significantly from the renewed optimism of a trade deal. On Friday, China also said that it had reached a consensus in trade deals with the U.S. [2]

Impeachment Affecting the Market

The new Dow record comes during Democrats’ efforts to impeach President Trump, which Trump says is “hurting” the stock market. Strategists have previously mentioned that a long and drawn out impeachment or if either Senator Elizabeth Warren or Senator Bernie Sanders were to become the leading Democratic candidate, the market would take a dive.


Notes:

  1. ^Fitzgerald, Maggie. “After Dow hits a record, analysts believe these stocks will lead the measure to its next milestone.” CNBC, 4 Nov. 2019, www.cnbc.com/2019/11/04/after-dow-hits-a-record-analysts-believe-these-stocks-will-lead-the-measure-to-its-next-milestone.html. (go back↩)
  2. ^Li, Yun. “Trump boasts about Dow record amid impeachment probe: ‘Spend your money well!‘.” CNBC, 4 Nov. 2019, www.cnbc.com/2019/11/04/trump-boasts-about-dow-record-amid-impeachment-probe-spend-your-money-well.html. (go back↩)

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