Investors are betting that the fiscal stimulus President Trump has promised will boost inflation and interest rates, thereby fattening banks' bottom lines. Fred Katayama reports.
The Dow blew past the 20,000 mark Wednesday morning. The blue chip index reignited the rally that began with Donald Trump's presidential election victory in November. Catapulting the Dow this day: strong earnings from jet maker Boeing. But the real star of this recent rally was financial stocks. Goldman Sachs' and JPMorgan Chase's mercurial climb accounted for about one fifth of the Dow's gain. Investors are betting that the fiscal stimulus President Trump has promised will boost inflation and interest rates, thereby fattening banks' bottom lines. Economist Maria Fiorini Ramirez says Wall Street is keen on Trump's commitment to deregulation. SOUNDBITE: MARIA FIORINI RAMIREZ, CEO, MARIA FIORINI RAMIREZ, (ENGLISH) SAYING: "Companies may have less cost related to whether it's compliance or regulation and that frees quite a bit of the earnings at the bottom line. They're going to use some of that to reinvest and invest in capital, and dividends go to shareholders." If the Dow manages to close above 20,000 Wednesday, it will have taken the index just 42 sessions to climb 1,000 points ... the second fastest time ever.