• 35 YEARS AGO: The Dow’s 3000 Milestone
By SIMON CONSTABLE
When President Ronald Reagan took office in 1981, America’s economy and stock market began to bounce back. By the summer of 1990, some investors were concerned that the long rally and economic growth were coming to an end. During that time, the Dow Jones Industrial Average bashed through the 3000 level on July 13 and July 16, but only intraday. Shortly after that, in October, the market retreated to a low of 2365.10 on the Dow.
By April 17, 1991, with the first Gulf War in the rearview mirror, Wall Street was betting on an economic recovery. And that day, the Dow reached the 3000 milestone—closing at 3004.46. The six-month 27% rally was dominated by growth stocks and, to a smaller level, cyclical stocks.
“What you are seeing here is a market moving on the expectation of economic recovery and being buoyed by lower interest rates,” Edward Kershner, a market strategist at PaineWebber Group, told The Wall Street Journal. READ MORE HERE.
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