U.S. equities and stock exchange traded funds continued their record push as investors remained optimistic that President Donald Trump will unveil tax reform plans in the weeks ahead.
The S&P 500 Index, along with related funds including the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and Vanguard 500 Index (NYSEArca: VOO), were 0.2% higher Friday, with the benchmark index hitting a new record high and on track for its third consecutive week of gains.
Equities continued to strengthen Friday after Trump promised a “phenomenal” tax plan, renewing the post-election rally, which lost momentum in recent weeks on concerns over his protectionist stance and lack of additional information on policy changes, reports Yashaswini Swamynathan for Reuters.
“The market is saying, ‘Thank you for coming back to the very core of the reasons we have accepted your agenda’,” Quincy Krosby, market strategist at Prudential Financial, told Reuters.
Trump said his goal of lowering taxes for businesses was moving “ahead of schedule.” The President expects to send the Republican controlled Congress an outline for a comprehensive plan to overhaul the tax code for individuals and businesses by the end of the month, the Wall Street Journal reports.
“Politics is playing a much larger role in the day-to-day and week-to-week market than it ever has before,” Brian Nick, chief investment strategist at TIAA Investments, told the WSJ. “It’s not the euphoria we’ve had since the election, but until we have something happen to throw a wrench in the market in terms of fiscal policy, investors are optimistic about the future.”
The energy sector was also among market leaders Friday, with the Energy Select Sector SPDR (NYSEArca: XLE) up 0.9%, as crude oil prices rose more than 2% on reports that the Organization of Petroleum Exporting Countries enacted over 90% of the output cuts they previously pledged.
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