For the first time the US stock index has exceeded the limit of 25,000 points. The strong labor market in the US is the reason for the recovery - a development of Barack Obamas leadership.
On Wall Street the Dow Jones stock index has set a new record. At the beginning of the trading period, the leading index rose by 0.5 percent to 25,042 points - the first time that it was above the 25,000-point mark. "We are taking these important hurdles more quickly," said one dealer. The Nasdaq Composite technology index also rose 0.5 percent to 7098 points, while the key S&P 500 gained 27 percent on 2722 points.
The good performance on the stock market was mainly supported by the good development in the US labor market. According to the human resources service provider ADP, the companies with a total of 250,000 employees hired more staff than expected. It has been the largest monthly increase since March.
The US Federal Reserve has already responded in December with the third rate raise in 2017 on the ongoing boom in the American job market. The leaving central bank chief Janet Yellen raised the key interest rate at that time by 0.25 percentage points.
The recovery of the US labor market had begun long before US President Donald Trump took office. Under his predecessor Barack Obama, the unemployment rate fell from ten percent in 2010 to less than five percent. At the end of last year, it was 4.1 percent.
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