Wall Street headed higher on Wednesday, with the Dow Jones Industrial Average stemming a four-day losing skid as investors got a look at the much-anticipated GOP tax reform plan touted by President Donald Trump.
The Standard & Poor’s 500 benefited from rising bank stocks, with financials up 1.3%. That also helped the Dow bounce back after sliding into the red during the session as expectations for higher interest rates grew. The year’s top performing sector, information technology, climbed 1.1%, sending the Nasdaq to the biggest increase among the benchmarks.
Goldman Sachs ( GS ) and JPMorgan Chase ( JPM ) were among the Dow’s strongest performers as the probability for a 25 basis-point interest-rate increase was at 76% on the CME Group’s FedWatch tool — down slightly from earlier in the day but still up from 71% a week earlier.
But much of the focus was on the release of the Republican tax reform framework on Wednesday, with Trump and other officials launching the plans at an event in Indiana. Stocks rallied in the wake of Trump’s election almost 11 months ago amid hopes that he would push ahead with campaign promises to cut corporate taxes and provide relief to low and middle-income families — raising the outlook for company earnings and economic growth.
Still, analysts noted that the plan was short on detail on how to compensate for the loss of revenue, and is expected to face opposition from Congress.
But the positive sentiment was dominant, with the markets sending six of 11 sectors on the S&P 500 higher and gainers outnumbering decliners on the Dow. Micron Technology ( MU ) led the Nasdaq higher with an 8.5% rally as its quarterly earnings beat expectations.
Here’s where the markets stood by the close:
Dow Jones Industrial Average was up 56.39 points (+0.25%)
S&P 500 was up 10.20 points (+0.41%)
Nasdaq Composite Index was up 73.10 points (+1.15%)
FTSE 100 was up 0.38%
Nikkei 225 was down 0.31%
Hang Seng Index was up 0.47%
Shanghai China Composite Index was up 0.05%
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