The Dow Jones Industrial Average (INDEXDJX: .DJI) breached 26,000 for the first time ever and set another record for the fastest 1,000-point rally in history. The Blue Chip index hit a high of 26,086.12 on Tuesday after closing above 25,000 for the first time in history only minutes into the third trading day of 2018.
The rally from 24,000 to 25,000 took just 23 trading days, breaking the previous 24-day record for a 1,000-point rally set in 1999 that took the index to 11,000. That record was matched in March 2017 when it hit 21,000.
But the rally to 26,000 took just 8 trading days, shattering all previous records.
In 2017, the Dow Jones notched 71 record closes and soared slightly more than 25.08%. The Nasdaq Composite (INDEXNASDAQ: .IXIC) rallied 28.24% on the year and the S&P 500 Index (INDEXCBOE: .INX) ended the year up 19.42%.
UPDATED: As of 12:16 PM EST, the Nasdaq was 26.22 points (0.36%) to 7,287.28, while the S&P was trading at 2,791.45, up 5.21 points (0.19%).
“Today’s market move is momentum from further positive comments by corporate executives on the implications of tax reform,” TJM Investments analyst Tim Anderson said. “The previous retail sales report raised the likelihood that the U.S. economy will finish 2017 with 3 consecutive quarters of 3%-plus GDP growth.”
Forecast models are now calling for U.S. economic growth as measured by gross domestic product (GDP) to grow by at least 3% on an annual basis in the 4Q.
In 2016, the U.S. economy grew at just 1.6% on an annual basis, it’s worst performance since 2011. But if the 4Q forecasts are matches or exceeded, it’ll mark the third straight quarter of economic growth at or above 3% since 2004.
Further, if the 4Q for 2017 comes in at the lower end of the regional Federal Reserve forecasts, roughly 3.2%, economic growth during the first year under President Trump will easily exceed the strongest year under Barack Obama.
The PPD GDP Forecast-of-Forecasts, which averages regional and comparable models, currently shows 4Q GDP standing at 3.56%.