FinFacts Ireland – The 30- blue chip Dow Industrials Average hit a new record on Tuesday, boosted by hopes that falling oil prices will support consumers and the housing market. The benchmark rose 56.99 points to pass the record close of 11722.98 that was set on Jan. 14, 2000, to finish at 11727.34.
From its 2000 high to its 2002 low, the Dow had plunged 37.85%; the tech heavy Nasdaq Composite Index, plunged 77.93%.
Recent gains have been fuelled by hopes that the Federal Reserve may begin to cut short-term interest rates sometime next year, to give the economy a boost. The prospect of lower interest rates has been pushing down the yields on Treasury bonds since late June, helping to also push down mortgage rates. Coupled with falling oil prices, consumers have reason to be more optimistic.
