U.S. stocks extended Friday’s bullish rally into the new week
, with each
of the major indexes trading near historic highs
for most of Monday’s session
. Optimism that the Republican Party will succeed in introducing tax reform
by the end of the year seems to be driving the positive undertone. In fact, recent reports suggest the GOP could hold begin voting as soon as Tuesday, which would ostensibly lay the groundwork for a significantly reduced corporate tax rate of roughly 21%. The prospect of tax reform has been the principal catalyst to the post-election run-up that has persisted since late 2016.
Each of the U.S. indexes
reached new all-time highs on Friday as optimism for tax reform spurred a bell-to-bell rally. While the bullish run was partly supported by the morning’s positive economic updates (U.S. industrial production edged higher, capacity utilization reached a two-year high), the primary driver today was optimism from The Hill. The upturn was not limited to large-cap issues. In fact, the S&P Small-Cap 600
and Russell 2000
both outpaced the major composites.
The equity market got off to a solid start this morning
, but lost ground as the session progressed
. At the close of trading, the Dow Jones Industrial Average was down 77 points; the broader S&P 500 Index was off 11 points; and the NASDAQ was lower by 19 points. Market breadth was negative, as losers outpaced winners by a wide margin on the NYSE.
The stock market delivered a selectively constructive, but
, session today
. At the close of trading, the Dow Jones Industrial Average was ahead 81 points; the broader S&P 500 Index was off one point; and the NASDAQ was higher by 13 points. The sentiment was generally positive today, as advancers outnumbered decliners on the NYSE.
Though overall market breadth was largely mixed
on Tuesday, some auspicious developments regarding tax reform
helped to drive several pockets of the market higher. Financials, healthcare, and telecommunications stocks were the leaders, with technology and utilities (another one of Monday’s stalwarts) somewhat offsetting that optimism. As the closing bell neared, the S&P 500 and Dow each slipped from their all-time intraday highs set around noon, but still remained well above their breakeven lines. Tomorrow’s decision by the Fed, as well as a new Consumer Price Index reading, will complement tax reform as the main factors likely to influence trading.
The major U.S. indexes shook off early-morning volatility
on Monday afternoon
. The gains
by strength in the energy
and technology sectors
, which helped to negate jitters following the terrorist attack near New York’s Times Square
. The tech-laden NASDAQ was accordingly the best-performing large-cap composite. With a dearth of updates on the tax reform front, which has been the primary headline-grabbing factor in recent weeks, investors in small-cap equities are apparently collecting some profits.
An upbeat November jobs report propelled the bulls on Friday, with each of the three major indexes registering
strong full-day gains. As per the U.S. Bureau of Labor Statistics, it reported nonfarm payrolls had increased 228,000 positions last month, beating expectations. The average hourly wages grew slightly, while the unemployment rate remained by its 17-year low of 4.1%. This set the stage for a mostly uninterrupted rally to close the week.
Equities moved nicely higher this morning
, pulled back around noon
, but managed to firm up selectively late in the session
. At the end of trading, the Dow Jones Industrial Average was up 71 points; the broader S&P 500 Index was ahead eight points; and the NASDAQ was higher by 36 points. Market breadth was supportive, as advancers outpaced decliners on the NYSE.
The major U.S. indexes were up-and-down early on Wednesday, before each settled into range-bound paths that persisted through most of the final hours. The NASDAQ 100 continued to recover from its trying open to the week and outperformed its blue chip and broad-based counterparts. The Dow struggled to remain above its breakeven line and saw more selling pressure in the final hour of trading. The S&P 500 was a little more resilient, while the small-cap Russell 2000 traded firmly in the red for most of the day.
After posting selective gains through most of the morning hours, the market adopted a negative tone during the second half of Tuesday’s trading
. The primary factor at play remains the Senate’s recently approved tax reform bill, which sent the Dow and S&P 500 to all-time highs early in the week. Since yesterday’s opening bell, however, investors appear to be taking advantage of the elevated valuations as the specifics of the proposal are digested.