High hopes for a business-friendly Donald Trump White House helped the Dow crack the 20K milestone, and market watchers think the president's policy can keep stocks humming even as concerns about prices rise.
The industrial average has now topped 20,000, rising 9 percent since its close on Election Day. Stronger U.S. economic data and optimism about Trump's business policy, among other factors, have pushed not only the Dow, but also the other major averages and small-cap stocks, higher in that time.
Risk factors like rising valuations, a potentially strengthening dollar and climbing interest rates could knock markets back down in the short term, experts said. Stocks have endured a sluggish period since mid-December after the initial post-election rally wore off.
Still, experts said Trump's proposals, including corporate tax cuts, repatriation of cash overseas, deregulation and infrastructure spending, give investors enough hope for rising corporate earnings that the Trump enthusiasm may continue well into his administration.
"The market is perceiving this as a business-friendly administration that is coming into office for the next four years. ... It wouldn't take much to give earnings a real boost. I think that's where the market is coming from and I think it will continue," said Bruce Bittles, chief investment strategist at Baird.