Why Wall St loved Trump's big speech

Wall Street loved Donald's Trump's speech.

Never mind the lack of economic detail. He didn't say anything too weird, he sounded like a proper grown-up president and that was enough ... for now.

The Dow Jones Industrial Average surged 300 points to top 21,000 for the first time, the dollar advanced and Treasuries fell as investors grew increasingly confident global economic growth is accelerating, clearing the path for higher interest rates in America.

In the crazy political climate Trump has fostered it was enough that he delivered a speech which is expected to play well in middle America.

Trump's plans to boost spending and ease regulation have helped fuel a Wall Street stock rally, sending the value of global equities above US$70 trillion ($98t) and propelling the US dollar higher.

Markets in across Asia, including New Zealand's NZX, Australia's ASX and Japans' Nikkei all joined the rally.

But fears are growing that markets are getting ahead of themselves.

The steeper the rise, the further they have to fall if he fails to deliver a workable plan.

Analysts are talking about "implementation risk".

Market expectations that he might deliver some more specific details about his tax policies and plans to fund infrastructure were carefully played down by his administration in advance of the speech.

The speech offered few new proposals and Trump made no suggestions on how he would pay for his plans, including a replacement of Obamacare, a tax overhaul including cuts for the middle class, US$1t in infrastructure investment and a large increase in defence spending.

It was also strong on immigration, and law and order but there was no specific reference to import tariffs which some analysts interpreted optimistically as lowering the risk of an international trade war.

But broadly there was a sense that no new gaffes or radical policy announcements was good news and means business as usual for investors.

And right now that seems to be: buy the Trump story until there is a reason not to.

-additional reporting Bloomberg