Wall Street stages yet another record-setting rally on Monday
|- Financials and materials lead the gains on Monday.
- Healthcare and utilities lag behind.
- Nasdaq surpasses the 7K threshold for the first time.
Major equity indexes in the United States started the week on a positive note as investors continued to price the potential positive impact of corporate tax cuts on equities. Top Republicans on Sunday said they were expecting the Congress to pass the tax bill this week and today's headlines revealed that the Senate was going to vote on the bill on Tuesday. In case the bill passes, President Donald Trump could sign the bill and legalize it before the Christmas break.
“This Congress has shown an inability to pass anything over the past five years. If a major piece of legislation is passed, you’d expect the markets to be happy,” Michael O‘Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut, told Reuters.
The S&P 500 Materials Sector (SPLRCM) added 1.5% on the day and became the best-performing sub-index followed by the S&P 500 Financials Sector (SPSY), which gained 0.82%. Although the barrel of West Texas Intermediate settled 15 cents lower on the day a little above $57, the S&P 500 Energy Sector (SPNY) finished the day 0.7% higher as investors remain focused on the rising shale oil production in the U.S.
On the other hand, the S&P 500 Utilities Sector (SPLRCU), which reacts to rising rates negatively, lost more than 1% to become the biggest loser of the day while the S&P 500 Health Care Sector (SPXHC) closed a little lower.
The Dow Jones Industrial Average gained 143.75 points, or 0.58%, to 24,795.49 and the S&P 500 added 14.83 points, or 0.55%, to 2,691.77. Boosted by a 0.75% increase in the S&P 500 Information Technology Sector (SPLRCT), the tech-heavy Nasdaq Composite advanced above the 7K for the first time before ending the day 60 points, or 0.87%, higher at 6,996.59.
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