Dow 12,000: A State of the Union bump?
The Dow topped 12,000 Wednesday morning for the first time since 2008. Could the business-friendly speech Obama delivered the night before have anything to do with it?
The Dow Jones Industrial Average crossed 12,000 for the first time since June 2008, just hours after President Obama delivered a State of the Union address that Huffington Post political editor Howard Fineman calls "the most pro-business speech a Democrat has given, since, well, that a Democrat has given." Obama called for lower corporate tax rates and ditching unnecessary regulation, and proposed unspecific steps to lower the deficit. Did Obama's speech nudge the Dow above the psychologically important 12,000 threshold? (Watch a Bloomberg discussion about the Dow's rise)
Obama's speech helped: The stock market certainly "seemed to enjoy the State of the Union address," says Sean Gregory in Time. But Obama's optimistic "pep talk" and "chatter about lower corporate tax rates" aren't the only factor in the Dow's "remarkable" bounce. Some "hard-core data," like good housing news, did as much or more to "put the market in a good mood," and the Fed's "monetary stimulus" is probably "inflating the good vibe."
"Dow 12,000: A welcome milestone"
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
And he deserves credit for more than this speech: "For those of you keeping score at home, the Dow closed at 7,949 on Bush's last day in office," says Jed Lewison in Daily Kos. That means between Obama's inauguration and second State of the Union, the Dow has jumped 50 percent. If conservatives blamed the president's "socialism run amok" for the Dow's lows in his first two months in office, it's only fair to credit this same "liberal thugism" for where the market is now.
"Dow at 12,000: Obama must really be a socialist now"
But a pep talk won't solve our "grim" problems: Capitalism is a fickle mistress, says Megan McArdle in The Atlantic. Obama spent about an hour "kind of noting, offhand, that we might have a problem" in our projected $1.5 trillion deficit, but "studiously" avoided "any serious solutions." That won't cut it. Dow 12,000 is great for now, but "the market is fully prepared to serve as judge, jury, and executioner if we don't straighten up soon."
"U.S. budget deficit to pass $1.5 trillion this year"
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - April 21, 2024
Cartoons Sunday's cartoons - devilish decrees, biblical blunders, and more
By The Week US Published
-
5 carefully selected cartoons about the Trump-Daniels jury selection process
Cartoons Artists take on a stress-free life, rare peers, and more
By The Week US Published
-
Loire Valley Lodges review: sleep, feast and revive in treetop luxury
The Week Recommends Forest hideaway offers chance to relax and reset in Michelin key-winning comfort
By Julia O'Driscoll, The Week UK Published
-
Arizona court reinstates 1864 abortion ban
Speed Read The law makes all abortions illegal in the state except to save the mother's life
By Rafi Schwartz, The Week US Published
-
Trump, billions richer, is selling Bibles
Speed Read The former president is hawking a $60 "God Bless the USA Bible"
By Peter Weber, The Week US Published
-
The debate about Biden's age and mental fitness
In Depth Some critics argue Biden is too old to run again. Does the argument have merit?
By Grayson Quay Published
-
How would a second Trump presidency affect Britain?
Today's Big Question Re-election of Republican frontrunner could threaten UK security, warns former head of secret service
By Harriet Marsden, The Week UK Published
-
'Rwanda plan is less a deterrent and more a bluff'
Instant Opinion Opinion, comment and editorials of the day
By The Week UK Published
-
Henry Kissinger dies aged 100: a complicated legacy?
Talking Point Top US diplomat and Nobel Peace Prize winner remembered as both foreign policy genius and war criminal
By Harriet Marsden, The Week UK Last updated
-
Trump’s rhetoric: a shift to 'straight-up Nazi talk'
Why everyone's talking about Would-be president's sinister language is backed by an incendiary policy agenda, say commentators
By The Week UK Published
-
More covfefe: is the world ready for a second Donald Trump presidency?
Today's Big Question Republican's re-election would be a 'nightmare' scenario for Europe, Ukraine and the West
By Sorcha Bradley, The Week UK Published