Wall Street completes the year with record-breaking gains
2013 was a big year on Wall Street. The Dow Jones Industrial Average, S\u0026P 500 and Nasdaq indexes all had banner years. But do these gains reflect wider gains in the economy? Jeffrey Brown talks to Roben Farzad of Bloomberg Businessweek, Harry Holzer of Georgetown University and financial advisor Hugh Johnson.
Wall Street breaks new records
US stocks opened at new all-time highs on Friday as optimism over US-China trade relations and an improving global economy revived investor sentiment for the new year.
Global Economic Resilience Data Shows China’s Industrial Profits Growth Fastest In Eight Months In November.
This was also supported by positive reports from other Asian countries, including industrial production and retail sales..
«With the trade deal becoming a central factor, the pressure on the global economy should ease, starting with China, to rule out the possibility of a global recession.», – said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Robust U.S. economic data, relatively loose monetary policy, and hopes for an imminent trade truce between Beijing and Washington have all contributed to this month’s Wall Street rally..
S&The P 500, which hit record highs in two out of three sessions in the shortened holiday week, now lags about half a percent behind consolidating its best year since 1997 year.
All three major indices posted record highs at the close on Thursday when the Nasdaq crossed the 9000 mark for the first time.
However, some analysts warn that weak Chinese demand remains a risk to corporate earnings next year..
The Dow Jones Industrial Average (DJIA) rose 53.95 points (0.19%) at the open to 28,675.34. S&P 500 opened up 7.32 points (0.23%) to 3,247.23, while the Nasdaq Composite at the opening of trading gained 27.08 points (0.30%) to 9,049.47.