WASHINGTON: “Stock market hits new high with longest winning streak in decades. Great level of confidence and optimism — even before tax plan rollout!” Donald Trump tweeted this week. It is a statement that goes beyond the president’s usual rhetoric. Indeed, Wall Street had a record-setting week that included the four key US stock benchmarks — the S&P 500, the Dow Jones Industrial Average, the Nasdaq Composite and the Russell 2000 of small capitalisation stocks — not just hitting further highs but each closing at a record level for four consecutive days. It was a feat last achieved in June 1995, according to FactSet. The “Trump trade”, “Trumponomics”, or “Trumpflation” that accompanied the surprise election of Mr Trump in November bolstered a bull run in US stocks that turns eight years old in March. The thinking is that his proposed combination of tax cuts, infrastructure spending and deregulation would easily pass through a Republican-dominated Congress, boosting economic and earnings growth.
Some of the market’s biggest names, such as Apple and Goldman Sachs, hit further highs this week, but the gains have been broad-based, with small-caps even joining after lagging behind their larger counterparts this year. The latest leg in the rally came even though investors are awaiting details and approved plans on Mr Trump’s objectives. He has, for example, promised a “phenomenal” tax plan, but it has not emerged yet. This week was also marked by political turmoil for the president in the form of the high-profile resignation of his national security adviser and persistent criticism of dealings with Russia, capped off by a combative press conference on Thursday.
