Dow sets first record since January

What commercial war? The Dow reached its first record since the end of January.

This important step shows that Wall Street is most often indifferent to the growing trade conflict between the United States and China. The S & P 500 also set a historic record on Thursday.

The Dow Jones has risen by about 3,300 points since the trough of April 2, while investors were more concerned about trading. They bet that the strength of the US economy will be fueled by soaring fares.

"The market is showing incredible strength," said Paul Hickey, co-founder of Bespoke Investment Group.

Stocks climbed at the end of last year and in January, after the Republicans passed a major corporate tax cut. The euphoria has raised the Dow Jones from 25,000 to 26,000 in just seven days. Even the optimists of the market wondered if stock valuations had become uncontrollable.

"In January, it seemed like the market was bullet-proof," said Dan Suzuki, portfolio strategist at Richard Bernstein Advisors. "This is no longer the case."

Eventually, this rally collapsed dramatically, punctuated by two dives of 1,000 points a day. Wall Street has been overwhelmed by fears of inflation and rising interest rates. This was the scariest moment for American investors for years.

"The feeling had become uncontrollable.The downturn was a reality.The absence of a new high for so long has allowed the market to catch up with fundamentals," said Hickey.

And the fundamentals look very good. Corporate profits have increased, thanks to strong economic growth and corporate tax cuts. The unemployment rate fell to only 3.9%. And US economic growth has reached an annualized rate of 4.2%.

"What matters most to investors is corporate profits," said Suzuki. "Profit trends are healthy – and they are accelerating – it's extremely optimistic for US stocks."

If the Dow Jones index closes above 26,616.71, it will mark the 100th record close of the index since the election of President Donald Trump in November 2016, according to S & P Dow Jones Indices.

CNNMoney (New York) First published on September 20, 2018: 9:58 ET