The record close for the Dow Jones Industrial Average reflects unexpected strength in corporate earnings, which analysts say gives stocks more room to rally.
"We're in the middle of a sustained rally and its being driven by earnings as investors' worst fears have proven to be somewhat overblown," Frederic Dickson, chief market strategist at D.A. Davidson & Company, told CNBC.com. "Generally the market has shaken off the notion of going significantly lower, which is how some were feeling in February. There haven't been any major disappointments and if we close above the record that will raise investor spirits as well."
Although the technology sector saw weakness on Wednesday, the rally has generally been broad-based with the Dow utilities and S&P Midcap hitting historic highs this week and the S&P500 trading at a six and a half-year high.
"Two-thirds of the companies that have reported so far have beat earnings estimates and I'm a bit surprised," said Alan Skrainka, chief market strategist at Edward Jones. "The rally is being sustained by strong earnings and low interest rates."