Finance

White House Takes Credit For Dow Breaking Record

| by Robert Fowler

President Donald Trump and his associates have taken credit for the Dow Jones Industrial Average breaking 20,000 for the first time on Jan. 25. The stock market benchmark is a largely symbolic indication of economic optimism, although some observers have asserted that not all the credit goes to the president.

Trump took to social media to comment on the new record.

"Great!" the president tweeted out, including a link to reports of the Dow's historic stock trading.

Trump adviser Kellyanne Conway also weighed in on the news, crediting the new record to "the Trump effect."

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The president's son, Eric Trump, appeared to directly credit his father for the Dow's rising tides.

"Amazing … and he is just getting started!" the Trump scion tweeted out.

The stock market's performance has defied previous projections that the uncertainty of Trump's presidency would crash Wall Street. On Nov. 9, the day after Trump won the election, the Dow rose 257 points to close at 18,589 and has continued to surge, resulting in a new peak with the Dow Jones' latest record of 20,068.

Despite the booming market, investors continue to express anxiety.

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In a recent note to clients, Goldman Sachs strategist David Kostin stated that economic "policy uncertainty was a topic of concern raised in every client meeting."

Some Wall Street players do not believe Trump deserves all the credit for the stock market's rise. On Jan. 18, Goldman Sachs CEO Lloyd Blankfein asserted during the World Economic Forum in Switzerland that the markets were already heading in the right direction during President Barack Obama's administration.

"I think one of the reason why the election had such a dramatic effect is because it was drawing people in the direction that it was already heading," Blankfein told CNBC. "I think the markets were improving ... We were already at or near full employment."

The Goldman Sachs executive concluded added that Trump was inspiring investor confidence because "a lot of his commitments were lower taxes, more spending on infrastructure ... peeling away some of the regulation, which is also kind of a stimulus to the market."

On Jan. 19, a poll conducted by Fox News found that the majority of American adults felt optimistic about the economy under Trump.

While only 42 percent of respondents approved of the president, 66 percent said they were optimistic about the economy. That is a noticeable improvement from January 2015, when the same polling group found that only 58 percent of respondents felt optimistic about the economy.

Sources: CNBCFox NewsSlateYahoo Finance (2), POTUS/Twitter / Photo Credit: Sam Valadi/Flickr

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