Dow Jones makes history, what that means for you

Dow Jones vs. S&P 500: What’s the difference?

RADFORD, Va. (WDBJ7) It"s been a historic week on Wall Street. The Dow Jones is above 20,000 for the first time.

Investors are calling this a "Trump rally" after the new administration started forming its agenda. Some say it"s the anticipation of the new president"s promises to encourage more business friendly policies.

It"s part politics and part economic trends that helped the dow jones industrial average reach new heights.

"Certainly the business community did think that regulations had grown quite a bit over the last eight years or so," said Steven Beach, Radford University"s associate dean of the College of Business and Economics.

He says fewer regulations on businesses is more positive for the economy.

Change in the administration is being mirrored in the stocks. Just this week President Trump signed executive orders to revise trade agreements - at the same time the Dow rose higher.

"Financials are going to do well generally in an environment where we expect it to be a pro-business, pro-economy administration. Furthermore when we look at it that way we can expect there to be inflation also and that is what"s driving a lot of this," Beach said.

This has impacts on us all, even people not invested in the market place. First, Beach says, it can generate tax revenues that help fund state and federal services. Also, the stock market usually predicts upcoming trends in the economy.

"And if that"s truly the case and it"s correct, then this is a sign that we should expect the economy to be growing," Beach said.

Wall Street is expecting the stock prices to climb higher if investors stay optimistic about the future.

Source: http://www.wdbj7.com/content/news/Dow-Jones-makes-history-what-that-means-for-you-412012955.html