U.S. stocks rose, pushing the S&P 500 Index to an all-time high on a closing basis, as investors added to a post-election advance spurred by speculation the incoming administration’s policies will incite brisker economic growth.
The S&P 500 rose 0.4 to 2,190.84 at 9:34 a.m. in New York, surpassing the Aug. 15 closing high of 2,190.15. The intraday record sits above 2,193. The Dow Jones Industrial Average advanced 46.92 points to 18,914.85 to an all-time high. The Russell 2000 Index rose for a 12th day in its longest rally since 2003.
The new milestone for the S&P 500 arrived as companies ended a five-quarter profit slump and Donald Trump’s election fueled optimism that his plans to cut taxes and boost fiscal spending will benefit industries more geared toward economic growth. Acknowledging the strength in the economy, Federal Reserve Chair Janet Yellen said Thursday that the central bank is close to lifting interest rates, comments that sent Treasuries lower and yields on the 10-year note toward 2.25 percent.
“There’s optimism that it’s more likely that Trump is going to put us on an economic fast track versus Clinton,” said Terry Morris, manager director of equities at BB&T Institutional Investment Advisors in Wyomissing, Pennsylvania. “The election had something to do with this, and I also think there’s some short covering going on. People that were hedging the election had to rush to cover after the news, and I think generally the perception is the economy is starting to pick up as the Fed is likely to raise rates in December.”
Investors have boosted bets for tighter monetary policy since Donald Trump’s election win, on speculation his policies will spur growth and increase inflation. After Federal Reserve Chair Janet Yellen said last week the central bank is close to raising rates, traders are now pricing in a 98 percent chance of a move in December. If the Fed doesn’t act as expected, it may bring on more market turmoil, says Seven Investment Management’s Ben Kumar.
Most-hated stocks are among the biggest winners since Trump’s victory. A Goldman Sachs Group Inc. basket of 50 companies that have the highest short interest in the Russell 3000 Index climbed 9.7 percent through Friday since Nov. 8, four times the gain in the broad market measure.m
Energy shares rallied Monday, following crude higher, after Iran signaled optimism OPEC will agree to a supply-cut deal and Iraq said it will offer new proposals to help bolster the group’s unity before members meet next week. Chesapeake Energy Corp. and Murphy Oil Corp. led gains.
S&P 500 hits new all-time high as energy stocks rally 2%
U.S. equities traded higher as oil prices rose on renewed optimism that OPEC was closing in on a deal to cut production – CNBC – http://cnb.cx/2gCrE7H
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