Dow hits record

In stark contrast to the suffering city of Detroit, US stock markets smashed through their previous peaks and rose to historic highs yesterday.

Both the Dow Jones industrial average and the S&P 500 hit previously unseen levels after climbing 0.5 per cent.

Morgan Stanley, which released better-than-expected earnings figures, saw its shares rise to $27.70, a 4.4 per cent increase. A fall in jobless claims was also revealed, boosting market confidence.

The previous peak for the stock market was set in May this year, before Federal Reserve chairman Ben Bernanke took the wind out of the rally by suggesting that QE could be tapered in the near future.

Moody’s, the credit ratings agency, also delivered good news by changing its outlook on the US sovereign Aaa rating to stable. It had previously had a negative outlook for the country.

The Dow has risen 18.7 per cent since the beginning of 2013.