Dow Jones Hits 20,000 Mark For First Time

The Dow Jones industrial average crossed the 20,000 mark for the first time, with the blue-chip index reaching that threshold after hovering just south of it for more than a month.  

The index crossed the line at the opening bell, following new record highs Tuesday for the S&P 500 and the Nasdaq Composite index. Before trading opened Wednesday, Dow futures contracts indicated that it was likely to hit the mark at the outset.

It remains to be seen whether the Dow will stay above 20,000 at the closing bell at 4 p.m. Eastern time.
The run-up to Dow 20K began as the market rallied following the election of Donald Trump. The index reached the 19,000 mark on Nov. 22 and kept spiraling upward until mid-December, when it ran out of fuel. 

Expected fiscal stimulus, lower taxes and lighter regulation under Mr. Trump was one significant spur to the Dow’s climb, along with those of other indexes. But while the S&P 500 and Nasdaq Composite went on to score new records, the Dow wavered just short of the 20,000 line. 

One reason for the delay in crossing the line has been the price-weighted make-up of the Dow -- the S&P 500 and the Nasdaq use market valuation, or the number of shares times price. Under the Dow system, however, the stocks are ranked simply by their share price. So financial services firm Goldman Sachs (GS) has the most impact, with its $233 price.