The Dow Jones industrial average eclipsed the 21,000-point benchmark in midday trading Wednesday. RICHARD DREW/AP
The Dow Jones industrial average soared to an all-time high Wednesday as stocks jumped in the aftermath of President Donald Trump's speech to a joint session of Congress.
The month of March roared in like a lion as the Dow opened just shy of the psychologically significant 21,000-point benchmark. Shortly after the opening bell, the index sprinted over the finish line and was up more than 250 points in midday trading from Tuesday's close.
The Standard & Poor's 500 and Nasdaq composite indexes were also up more than 1 percent Wednesday morning.
"If the Dow closes above 21,000 today, it would be only 24 days to go from 20,000 to 21,000 – tying the record from 10,000 to 11,000 in 1999," Ryan Detrick, a senior market strategist at LPL Financial, said in a statement Wednesday. "Of course, in terms of percentage moves, the move in 1999 was much larger – nonetheless, this only reinforces how strong the rally has been since the election."
The Dow opened Wednesday up more than 2,600 points – or more than 14 percent – from where it closed on Election Day. Investors have broadly rallied behind Trump's promises of lower corporate tax rates, private-sector deregulation and infrastructure investment.
Infrastructure stocks in particular have enjoyed hearty gains since Nov. 8 and surged Wednesday after dropping last week on rumors that Trump and his cadre of GOP lawmakers won't address infrastructure reform until next year.
Trump made infrastructure a key tenet of his Tuesday speech, calling on Congress to "approve legislation that produces a $1 trillion investment in the infrastructure of the United States – financed through both public and private capital – creating millions of new jobs."
U.S. Concrete's stock, for example, was up more than 5 percent in midday trading Wednesday. U.S. Steel was trading up more than 2 percent, while Fluor Corp., one of the largest publicly traded construction companies in the U.S., enjoyed gains north of 2.5 percent.
Banking and financial stocks likewise soared Wednesday after Trump vowed to "massively reduce job-crushing regulations" and "reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone."
JPMorgan and Bank of America saw their respective stock prices rise more than 3 percent in midday trading Wednesday, while Goldman Sachs and Citigroup each enjoyed a more than 2 percent post-speech bump.
"I think Wall Street was clearly off-base going into this [speech]. Certainly I was. And that's why you're getting, I think, such a sharp reaction to the upside," Art Cashin, director of floor operations for UBS, told CNBC in an interview Wednesday. "You can see it. The banks are moving. I want to see how long this lasts."
Though some have floated the idea that the stock market is currently overvalued, a recent series of strong earnings reports, solidifying manufacturing sentiment and continued job gains are also believed to be encouraging investors.
"Are we extremely overbought? Yes, and a modest correction would be perfectly normal, but the positive thing about this move is it has been driven by improving earnings," Detrick said. "This helps justify the gains, as it isn't all based on hopes for tax reform or infrastructure spending. There is real economic improvement now that has sparked much of the rally."
