Trump speech sends Dow zooming above 21,000 for first time - KMOV.com

Trump speech sends Dow zooming above 21,000 for first time

Posted: Updated:
Getty Images Getty Images

By Matt Egan

NEW YORK (CNNMoney) -- Wall Street is giving President Trump's first speech to Congress a standing ovation.

The Dow soared 200 points and topped the 21,000 level for the first time ever on Wednesday morning. The milestone comes barely a month after the Dow hit 20,000 for the first time.

Trump's primetime address to Congress received high marks from viewers and has clearly left Wall Street in good spirits, too.

It's not that the speech gave investors the policy details they were seeking. If anything, Trump gave fewer specifics on major issues like tax reform, Obamacare and deregulation than many expected.

The key for Wall Street is the tone of Trump's speech: he sounded a lot more optimistic and presidential than in previous speeches.

"The speech didn't break any new ground, but it was much more orderly and methodical than we are used to hearing," said Nicholas Colas, chief market strategist at brokerage firm ConvergEx.

"It was a solid speech from the perspective of putting Trump on a truly presidential footing," Colas said.

That's a welcome shift given the turbulent start to Trump's term that has mired the administration in controversy.

Chris Krueger, a Cowen & Co. analyst, summed the speech up this way: "Bigly delivery, more optimism, less detail."

Bank stocks were also on fire on Wednesday, although Trump didn't say anything in his speech about efforts to rip up the Dodd-Frank Wall Street reform law.

Instead, big banks like Bank of America and Citigroup jumped more than 2% apiece due to increased confidence that the Federal Reserve will raise interest rates this month. That would be good news for banks, because ultra-low rates make it difficult for them to make money.

Rate hike hopes were on the rise after New York Fed President Bill Dudley told CNN's Richard Quest that the case for raising rates has become "a lot more compelling."

"There's no question that animal spirits have been unleashed a bit post the election," Dudley said.

--CNNMoney's Ivana Kottasova contributed to this report.

TM & © 2017 Cable News Network, Inc., a Time Warner Company. All rights reserved.

Powered by Frankly