Dow Jones sets sights on 25K

Index has gained 5,000-plus points this year.

The Dow Jones industrial average has climbed more than 5,000 points in a year for the first time in its history, punctuating a 2017 filled with milestones. The Dow rose 140.46 points to close at 24,792.20 Monday. That put the average’s gains for the year at 5,029 points and nudged it closer to the 25,000 mark. The latest surge for blue-chip stocks is powered by Wall Street’s positive reaction to the Republicans’ tax-cut plan, which appears to be on track to pass this week. If the bill becomes law, it could provide a fresh boost to U.S. growth and corporate earnings. Republican lawmakers finalized the bill on Friday. The centerpiece of the bill is a sharp cut in the corporate tax rate to 21% from 35%. That change alone has boosted investors’ so-called “animal spirits,” or willingness to take risk. Bill Stone, chief investment strategist at PNC Asset Management Group, said investors are encouraged the GOP tax cut agreed upon in joint-chamber negotiations was larger than either the House or Senate bills individually. “Today is probably the continuation of some optimism on tax reform,” Stone said, adding the plan’s allowance for businesses to write off capital expenditures was another catalyst. The Dow’s rally, which has come without a drop of 5% in more than 18 months, has also been fueled by an economic recovery worldwide. That has boosted the profitability of American companies, reduced the U.S. unemployment rate to 4.1% and lifted the confidence of investors. Those broader trends have helped the Dow barrel through 1,000-point milestones at the most prolific pace in its 121-year history. And if the average blows past 25,000, Wall Street is buzzing that 30K may not be far behind. Among Monday’s winners was billionaire investor Warren Buffett’s Berkshire Hathaway. Shares of the Oracle of Omaha’s company briefly traded above $300,000 for the first time in their history.