U.S. stocks surged in early trading Wednesday, pushing the Dow Jones industrial average above 21,000 points for the first time. Banks and other financial stocks led the gainers amid fresh expectations that interest rates will rise. Energy companies also rose as oil prices headed higher. The rally came a day after President Donald Trump addressed Congress, reiterating plans to cut taxes and push for other business-friendly policies.
KEEPING SCORE: The Dow jumped 242 points, or 1.2 percent, to 21,055 as of 10:07 a.m. Eastern Time. The Standard & Poor’s 500 index gained 24 points, or 1 percent, to 2,387. The Nasdaq composite index added 59 points, or 1 percent, to 5,885. Small-company stocks continued to outpace the rest of the market, a bullish signal on the economy. The Russell 2000 index rose 24 points, or 1.7 percent, to 1,410.
THE QUOTE: “It’s nice to see the Dow put another thousand figure up so quickly,” said Paul Christopher, head global market strategist for Wells Fargo Investment Institute. “At the same time, it sort of suggests this is a sentiment-driven rally. There’s usually some recalibration of sentiment at some point.”
TRUMP SPEECH: In his speech, Trump reaffirmed his pledges to reform taxes, slash red tape and ramp up spending on defense and infrastructure projects. The promises have helped send U.S. stock benchmarks to records.
BANK BOOST: Investors bid up bank shares in anticipation that interest rates will rise. JPMorgan Chase climbed $2.69, or 3 percent, to $93.31. Goldman Sachs rose $5.40, or 2.2 percent, to $253.46.
LUMBER JACKED: Builders FirstSource, a maker of building materials, jumped 14.8 percent, getting a boost from rising lumber prices. The stock gained $1.92 to $14.86.
BUILD IT: Lowe’s climbed 9.1 percent after the home-improvement retailer’s latest quarterly earnings and outlook beat Wall Street’s forecasts. The stock added $6.76 to $81.13.
