Until Thursday, the Dow Jones industrial average had never closed above 16,000 points. That all changed today, when the average did close above 16,000—a record high—despite this gosh darn Obama economy.
The all-time high is also the 40th peak that the DJIA has hit this year, indicating increasing investor confidence in the economy. Part of the market's growth has been stoked by the Federal Reserve keeping interest rates low by "buying $85 billion a month in Treasury and mortgage securities."
The Wall Street Journal writes that the record close was due in part to greater confidence in the economy as the Fed plans to scale back its efforts in stimulating the economy.
One finance worker told USA Today, that the milestone "is the catnip to the retail investor. When people talk about the Dow, they don't talk about Dow 15,995. They care about Dow 16,000." Round numbers!
But according to the LA Times:
Some on Wall Street are fretting over the recent enthusiasm of small investors, who have poured money into stock mutual funds. Individuals historically barrel into the market at the tail end of rallies. They miss most of the gains but leave themselves exposed to losses when an eventual downturn hits.
This article is from the archive of our partner The Wire.