I wouldn't say that anything in 1995 caused the surge. What you see was caused by something much earlier. Think about the kick in the butt US companies got as Japanese companies started to compete with the US in the 1980's. Many companies got leaner and meaner so profits picked up. Also whatever you think of the Reagan tax cuts of the 1980's they helped companies show higher profits since that money did not have to go for taxes. Also, for many years economist could not see how the Information Technology was helping the bottom line for companies. I suspect that the mid 1990's is when companies started showing the efficiencies that IT brings and therefore pickup earnings and the raise in stocks.