At Wall Street, all major indexes reached new record levels on Friday, as investors hoped that Congress would accept the tax reform proposed by US president Donald Trump. Dow Jones strengthened by 0.71 percent to 23.328 points, S & P 500 rose 0.51 percent, up to 2.575 points, and Nasdaq index rose by 0.36 percent to 6.629 points.

Drop in IBM share price

The Dow Jones Index breakdown of over 23,000 points is mostly due to a drop in IBM share price by almost 9 percent, after the tech giant was reportedly doing better than expected in the third trimester's business results.

IBM's prices growth contributed to the growth of Dow Jones with approximately 90 points out of a total of 160. Stocks in the financial sector also grew by 0.6 percent, thus compensating for losses from the previous day. Company's solid business results, steady growth in the economy, and the hope that the US President Donald Trump will succeed in implementing a tax reform to reduce taxes to companies and citizens were all factors for a long time supported rising stock prices.

Thus, the Dow Jones index for crossing the 1,000 points, up to 23,000 points, needed only 54 trading days. At one time, the transfer from 21,000 to 22,000 points needed twice as much time. "Small shareholders continue to invest in the market, and with every new index record they seem to miss something, and more and more investors are on the market," says Ian Winer, CEO at Wedbush Securities.

Analysts in the Reuters poll estimated that the profit of the S & P 500 index rose by more than 4 percent in the third quarter, as compared to the same period last year. It would have been slower than in previous quarters when earnings grew at double-digit rates.

Candidates for the head of Feda

But analysts usually put the estimates low because it is, therefore, easier for companies to exceed their expectations, so opening up space for stock price increases.

The S & P 500 index has risen from about 14 percent since the beginning of the year, so investors, analysts say, hope the company's results and their further business estimates justify such a strong index growth.

Donald Trump said that he would soon announce his decision on Feda's top spot and the candidates are, apart from Yellen and Jerome Powel, Trump's economic advisor Gary Cohn, former Fed governor Kevin Warsh, and Stanford University economics professor John Taylor. Choosing Powel would be, as analysts say, a good solution to the capital market as it would continue the moderate monetary policy that was run by Janet Yellen.
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