The Dow Jones industrial average has hit the highest intraday level in all of its history despite US budget uncertainties. The rally was fueled by reports about China’s plans to drastically increase spending.
The Dow Jones index on Tuesday hit a new all-time record, surging to intraday levels not seen in over five years.
The industrial average barometer rose to 14.223 within minutes after trading started, topping the last intraday record of 14.198 recorded on October 11, 2007.
Wall Street opened higher as institutional investors welcomed China’s record spending plans and hoped developments in the world’s second-largest economy signaled better growth prospects worldwide.
Lots of money floating around
The Dow Jones rally was also fueled by Japan’s resolve to continue its policy of quantitative easing, pushing into the background worries about the consequences of the US’ unresolved budget row.
Chip producer Qualcomm emerged as the biggest gainer in early trading, raising its stock value by 2.5 percent after increasing its dividend and announcing a buy-back program.
In Germany, the blue-chip DAX-30 also surged on China’s announcement of measures to fuel growth. Deutsche Post DHL and utility company RWE presented impressive earnings reports which also helped the DAX surpass the 7,800-point mark again.
The eurozone’s continued debt crisis did not seem to worry investors too much. “All crises are currently being drowned in liquidity,” Baader Bank analyst Robert Halver said in a statement.
