What do people think is driving the stock market's recent record high gains?
Well, there's really no precise answer, but analysts point to several factors. So, number one is strong third quarter earnings. Companies have reported stronger than expected results so far this season. The second is the jobs market. You saw the October jobs numbers exceed economists' expectations. And the third is the Federal Reserve cutting interest rates three times this year. That lowers borrowing costs for consumers and businesses and encourages them to spend more.
Is there a consensus on where the market goes from here?
Well, not exactly. Analysts are saying that by the end of next year, we could see the Dow at 31,000 points or others are saying the Dow could go down. So, look, markets go up and down all the time. Just remember that six and a half years ago, the Dow was at fifteen thousand points.