Wall Street surges to record highs as tax bill approaches the finish line
|- Financials and technology lead gains on Friday.
- CBOE Volatility Index drops more than 10%.
- The final version of the tax bill to be published after the closing bell.
After starting the day on a positive note, major equity indexes extended their gains on Friday and reached new record peaks, efficiently recovering yesterday's losses.
Florida GOP Sen. Marco Rubio, who said wouldn't vote yes on the tax bill unless the child tax credit was expanded, announced that he was going to support the bill following today's revisions. Representative Kevin Brady, chairman of the tax-writing House Ways and Means Committee, told reporters that the final version of the bill would be published later today around 22:30 GMT. Commenting on today's developments, “people still think the tax bill will get done. I don’t think Republicans are going to let this by the wayside as they’ve come this far,” Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company, told Reuters.
The CBOE Volatility Index, Wall Street's fear gauge, dropped more than 10% on Friday, reflecting an improved market sentiment. The risk-sensitive S&P 500 Information Technology Sector (SPLRCT) gained traction and was up nearly 1.3% at the time of writing. Meanwhile, the S&P 500 Financials Sector (SPSY) and the S&P 500 Health Care Sector (SPXHC), which recorded sharp losses on Thursday, were adding 1.4% and 1.1% respectively.
Based on the latest available data, the Dow Jones Industrial Average was adding 174 points, or 0.72%, at 24,682.49, the S&P 500 was gaining 25 points, or 0.94%, at 2,680.75 and the Nasdaq Composite was up 83.28%, or 1.21%, at 6,939.80.
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