US stocks extend record ad financials, healthcare lead.
US stocks rose to new records on Wednesday, buoyed by continued optimism that President Trump will lower taxes and boost economic growth.
All of Wall Street’s major indexes recorded new highs, as investors continued to cheer President Trump’s pledge to cut taxes in the coming weeks. The large-cap S&P 500 Index (NYSEARCA:SPY) finished 0.5% higher at 2,349.25.
Seven of 11 S&P 500 sectors recorded gains, led by a 1.2% advance in healthcare. Financials, the sector that has led the market higher since the November 8 election, rose 0.7%.
Consumer staples rse 0.8%. Industrials and information technology also finished higher.
The Dow Jones Industrial Average (NYSEARCA:DIA) rose 0.5% to 20,611.86. The benchmark gauge has now returned more than 4% this year.
The Nasdaq Composite Index (NYSEARCA:QQQ) finished 0.6% higher at 5,819.44.
Despite the rally, volatility had nowhere to go but higher on Wednesday, with the CBOE VIX (NYSEARCA:VXX) spiking 11.5% to 11.97. The so-called “fear index” closed near multi-year lows on Tueaday.
A slew of economic data from retail sales to consumer inflation pointed to an improving US economy in January, giving the Federal Reserve plenty of scope to continue raising interest rates. Fed Chair Janet Yellen told Congress on Tuesday it would be “unwise” to keep rates lower for too long.
The consumer price index (CPI) rose 2.5% in the 12 months through January, the Labor Department said. That was the biggest gain in four years.
The Final Word: US stocks appear to be in acceleration mode as President Trump carves out a new policy framework for the world’s largest economy. Gains are expected to continue so long as investors are optimistic about the new administration’s pro-growth policies.