The financial and industrials sectors led the markets higher. The Financial Select Sector SPDR (NYSEArca: XLF) was up 0.7%, with Navient, American Express and Allstate among the best performers. Meanwhile, the Industrial Select Sector SPDR (NYSEArca: XLI) was up 0.6%, with United Continental Holdings, Delta Air Lines and Southwest Airlines strengthening the sector.
The equities market has been supported by bets that President-elect Donald Trump will implement fiscal stimulus and tax cuts ahead. Speculating on the supportative economic measures, many investors believe stocks will continue to rally, but after the initial euphoria, traders are calming down and waiting on Trump to make good on promises.
“Equities have begun the year in somewhat of a wait-and-see mode following the robust runup since the election,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told the Wall Street Journal. “Now we have to watch for fourth-quarter results.”