Dow Jones breaks through 25,000 for first time ever after strong jobs data

Index continues rapid rise after passing 24,000 in November and hitting 20,000 less than a year ago

Ben Chapman
Thursday 04 January 2018 16:27 GMT
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(Getty)

The Dow Jones industrial average burst through 25,000 for the first time ever on Thursday, spurred by strong US jobs numbers.

The index of 30 leading US shares surged more than 140 points after new data from ADP Research Institute revealed that the American private sector added 250,000 jobs in December.

Economists had predicted an extra 190,000 jobs, according to Reuters.

The broader S&P 500 index gained 0.5 per cent in early trading, with the Nasdaq rising 0.2 per cent.

The 25,000 milestone is the latest record to tumble for the American stock market which rose rapidly throughout 2017.

The Dow only passed 24,000 in November after hitting 20,000 less than a year ago.

In December, President Donald Trump signed into law a sweeping tax reform bill that will slash taxes on corporate profits, which gave equities a boost.

Added to this, the US economy has performed better than expected, with unemployment now at a 17-year low.

Last month, the Federal Reserve revised up its 2018 economic growth prediction from 2.1 per cent to 2.5 per cent and the global situation also appears strong.

All of the world's major economies are now growing reasonably strongly for the first time in several years.

The surging price of stocks and other assets has caused some analysts to warn of a bubble which should be deflated by raising interest rates from their current low levels.

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