(FOX BUSINESS) – Another record week on Wall Street continued as the major averages hit fresh record levels and the Dow Jones Industrial Average traded and closed above 19000 for the first time ever.
Wall Street’s continued momentum came after notching closing highs on the Dow, S&P, Nasdaq, and Russell 2000 indexes during the prior session — the first time all four averages set new highs simultaneously since December 1999.
Since the surprise outcome of the U.S. election two weeks ago in which Donald Trump secured the White House, the Dow has rallied more than 667 points, or 3.64% as Wall Street has cheered the prospects of a round of infrastructure spending, renegotiated global trade deals, and a drawdown in regulation.
“Almost as surprising as the election result has been the market reaction,” said Joshua Feinman, chief global economist at Deutsche Asset Management. “There is a good chance of some significant fiscal stimulus, including tax cuts, tax reform, and infrastructure spending, which should boost growth and with the economy already close to full employment, help lift inflation back to target.”
However, “policy accidents,” or broken campaign-trail promises, could quickly undo the quick rally, warned Michael Block, chief strategist at Rhino Trading Partners.
“If we hear from Trump that he is not going to undo Dodd Frank because that’s not what he promised the people in Beaver Falls a few weeks ago, or if GOP legislators start pushing back on deregulation, we could see financials fall from lofty perches….if Trump makes noise about leaving ACA alone because he can’t figure out how to replace it yet, health care could suffer a setback,” Block said.