Listen to this article

00:00
00:00

The Dow Jones Industrial Average on Wednesday set a new closing high for the ninth day in a row, marking the longest record-setting run in three decades.

The blue-chip average climbed by 0.2 per cent on the day, breezing past its broader counterparts, the S&P 500 and the Nasdaq Composite, which both ended slightly lower.

US stocks have been on a tear since Donald Trump clinched the election in November, with the Dow having rallied by 13.3 per cent over that time period.

The index, which tracks 30 of America’s most prominent companies, has not closed at record peaks for nine days in a row since January 1987, according to Bloomberg data.

That year is better remembered for the Black Monday crash that followed nine months later: The Dow collapsed by more than 20 per cent on October 19 in its worst percentage decline on record.

Few investors expect such a dramatic decline on the horizon, however, there has been a growing drumbeat of warnings that a modest pullback could be coming. Goldman Sachs, for instance, has told its clients that US stocks are at risk from downside surprises in economic growth, or disappointment in fiscal policy.

Others have pointed to US economic data that have consistently topped expectations, along with forecasts for an acceleration this year in corporate earnings growth, as reasons why Wall Street’s run higher may continue for some time.

Copyright The Financial Times Limited 2017. All rights reserved.
myFT

Follow the topics mentioned in this article

Follow the authors of this article

Comments have not been enabled for this article.