The Dow Jones Industrial Average index's pop over 20,000 on Wednesday crowns a frenetic post-U.S. election rally that featured the second fastest-ever climb between 1,000-point milestones in the Dow's 120-year history.
The rally, driven by enthusiasm over pro-growth policies from newlyminted U.S. President Donald Trump and an optimistic start to earnings season, has led to some speculation that stocks have run up too far. Analysts and investors, however, remain optimistic that the nearly nine-year bull run in equities will continue as long as the economy and corporate profits continue to show growth.
"While the Dow hitting 20,000 is one of the least meaningful data points on my screen, it does suggest that the equity rally is pretty broad-based," said Michael Purves, chief global strategist and head of derivatives research at Weeden & Co. "What's important is that the Dow is going up."