Dow Jones
Dow Jones Index Rises 18,000 on Strong US Economic GrowthReuters

The Dow Jones Industrial average broke a record milestone on Tuesday surging 18,000 points to 18,024 thanks to the sturdy economic growth in the United States.

While the Dow rose for the fifth straight session reaching its highest peak for the first time, the Standard & Poor's 500 Index also went up to 2,082, up 12.7% for the week.

The Holiday season is usually good for the markets. Dubbed as the "Santa Rally", the period typically sees investors putting in good faith and cheer into stocks, investing their bonuses and allowances in shares of desired companies.

This year's Santa Rally has been exorbitant, marking the sixth consecutive year of a bullish stock market. Usually, the stock markets are bullish for a four-year period before finally declining by more than 20%.

The stock market started gaining speed in 2009 and has been going strong until 2014. The average return on investment in the stock market is 10% but in 2012 the rate was 13.4% and last year it climbed to 30%, according to the Chicago Tribune.

This year, the strong investor cheer came after the government released a report showing the US economy grew more than 5% in the third quarter, its quickest pace in 11 years. The US economic growth was driven by strong consumer confidence, cheaper oil and gas prices and improved hiring.

"After four years of rocky recovery the U.S. economy is now hitting its stride with a notable acceleration in growth. Growth should remain good next year, with lower gasoline prices a big plus for consumers," Gus Faucher, senior economist at PNC Financial Services Group was quoted as saying by The Courier Express.

While the data excited investors, it also raised analysts concern that a stronger economy could lead the US Federal reserve to raise interest rates sooner than expected. Some are also worried that the current scenario could set investors up for "potential disappointment."

"The clear strengthening in activity towards the end of 2014 may prompt some Fed officials to consider whether they need to raise rates before the middle of 2015," a note by Capital Economics read, according to The Wall Street Journal.

Earlier this month the Feds said they would be considerably "patient" about raising interest rates asserting that economic growth was of utmost importance.

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