U.S. equities and stock ETFs surged Tuesday, led by a rebound in technology company shares.
Technology companies in the S&P 500 led the charge, rising 1.5% Tuesday.
Market participants remained optimistic over the outlook, pointing to strong earnings, steady economic growth and slightly better valuations following the recent selling.
“We’re focusing less and less on the political backdrop,” Lew Piantedosi, director of growth equity for Eaton Vance, told the Wall Street Journal. “It’s the strength of the economy, not just here, but globally, that matter most to stocks. Earnings have been reasonably healthy for the last few quarters, too.”
The markets also strengthened on growing speculation that the Trump administration could push through tax reforms. U.S. House Speaker Paul Ryan indicated that tax reform would be easier to pass than the failed Obamacare overhaul, Reuters reports.