THE Dow Jones topped 25,000 points for the first time in history, raising questions about the sustainability of its unprecedented rally.
The incredible market milestone comes just over a month after the Dow Jones Industrial Average broke through 24,000 in November 2017.
The 121-year-old index is now witnessing its longest bull-run in years and Dow analysts are anxious to see how far this feat will go.
Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, said: "We have been moving up extremely fast.
"It's amazing and begs the question: How high can this thing go?"
Will the Dow Jones rise or collapse?The Dow Jones hit its all time high off the back of stronger than expected December jobs figures across the United States. Unemployment rates are the lowest they have been in 17 years and economic growth has risen to a three-year high.
Most analysts seem to agree that the bull run will continue through 2018 with aid from President Donald Trump’s tax reforms. The controversial rewrite of the US tax code will see corporate tax slashed from 35 percent down to 21 percent.
The US House of Representatives has already given the tax reform the green light and investors are hoping it serves to fuel robust market performance. Some analysts have further argued that it could incentivise business to bring overseas profit back home.
Nigel Green, founder and chief executive of deVere Group said the cuts have a good chance of boosting the American economy and stock market, which in turn could have a positive knock-off effect on global markets.
If economic growth contuse to accelerate in the near future, the Dow index stands a good chance of surging past 30,000.
He said: “Strong GDP growth is translating into good corporate earnings growth, which supports share prices.”
Jacob Deppe, head of training at Infinox, agreed there is little to stand in the way of the stock markets.
The finance expert said: “As for the stock market rally, given President Trump’s corporate tax reforms are still to come there seems little to hold stocks back. How long will it be before we see the Dow Jones hit 26,000?
"Despite the Trump tax reforms offering further wind behind the sails of this market, the irony is Donald Trump is himself creating the threat of rough seas through his public spats with North Korea, Palestine and former staff."
Dow industrials have risen 25 percent last year alone, and it only took 23 days of trading for the latest rally to jump 1,000 points. In fact, since President Trump’s election the index has spiked 36 percent or 7,000 points.
In past years, it took the Dow a grinding 14 years to climb from 10,000 to 15,000 points, and then another three and a half years to breach 20,000. It then took less than a year to reach its 25,000 milestone.
But despite the exuberant optimism there is slight concern investors might approach the news too optimistically.
Bruce Bittles, chief investment strategist at Baird, said he would not be surprised to see some market pullback if “investor optimism gets excessive”.
Mr Silverblatt meanwhile thinks there is enough actually profit behind the rally to avoid the disastrous effects of the 2000s DotCom bubble that was built on a period of extreme and unfounded growth of internet websites.
He said: "Unlike the bull market that ended in 2000, this one has earnings behind it.
"The fundamentals are good. The economy is strong."