Wall Street advances on 2018 budget plan
U.S. stocks rose on Tuesday after the release of President Donald Trump's budget plan but gave back portion of their daily gains towards the end of the day. Despite the late retracement, all the major equity indexes closed the day higher.
Trump administration's budget plan showed proposed increases in infrastructure and military spending while cutting the government spending by $3.6 trillion in an effort to balance the budget in the next ten years. Commenting on the plan, "there were no large surprises. The market is pleased with that," Wade Balliet, Chief Investment Strategist at Bank of the West, told Reuters.
On the other hand, the lack of new developments surrounding the government probe on possible ties between Trump's election campaign and Russia also helped the market sentiment improve during the day.
The Dow Jones Industrial Average added 43.08 points, or 0.21%, to 20,937.91, the S&P 500 rose 4.25 points, or 0.18%, to 2,397 and the Nasdaq Composite gained 5.09 points, or 0.08 percent, to 6,138.71.
Headlines from the U.S. session:
- US Dollar hovers around daily highs above 97
- CME Group FedWatch's June hike probability leaped above 80%
- U.S. Treasury bond yields edge higher on Tuesday
- CIA ex-chief cites signs of possible Trump campaign ties to Russia - Reuters
- US President's Budget FY 2018: A new foundation for American greatness
- US Treasury's Mnuchin: Hope to get tax reform completed this year
- US: Manufacturers were somewhat less upbeat in May - Richmond Fed
- US: Sales of new houses in April 2017 were at a seasonally adjusted annual rate of 569,000
- US: Business activity growth rebounds in May, led by service sector - Markit
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
