A rise of nearly 0.6 percent Tuesday sent the Nasdaq composite into record-breaking territory, with the index climbing above 6,000 for the first time ever. The Dow Jones industrial average also gained approximately 250 points and the S&P 500 grew 0.6 percent.
U.S. equities also rose due to solid quarterly reports from several large-cap companies.
Companies posting quarterly results that beat expectations included Caterpillar, McDonald’s, 3M, and DuPont.
“Earnings thus far have been good,” said Peter Cardillo, chief market economist at First Standard Financial. “That’s a good sign that Corporate America is on a renewed path toward growth.”
Reports are expected from more than 190 S&P components by week’s end. Boeing, Amazon, Alphabet, Microsoft and General Motors, among others, are scheduled to release quarterly results.
Since the first round of the French presidential election met with investors’ expectations, major U.S. stock indexes soared on Monday, with the Dow rising more than 200 points and the S&P and Nasdaq gaining approximately 1 percent.
As President Trump attempts to avoid a government shutdown, investors focused on Washington where funding for the government runs out Friday unless Congress passes new legislation.
The expectation of tax reform has been one of the essential market drivers since the presidential election, and the Trump administration is expected to present a tax reform plan later this week.
“Earnings and tax reform are the main [stories]” in the market, said Bruce Bittles, chief investment strategist at Baird. “For two months, we were in a consolidation phase and now we have the Nasdaq at an all-time high.”
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