S&P 500 tops $20 trillion as Wall Street eyes Trump tax cuts | Reuters
By Noel Randewich U.S. equity indexes hit record intraday highs on Monday, with the benchmark S&P 500's market capitalisation topping $20 trillion as investors bet tax cuts promised by President Donald Trump would boost the economy.Trump vowed last Thursday to make a major tax announcement over the next few weeks, adding fuel to a rally that had stalled amid worries about the potential impact of his protectionist trade stance and a lack of clarity about other policy reforms.The S&P has surged 9 percent since Trump's Nov.
By Noel Randewich
U.S. equity indexes hit record intraday highs on Monday, with the benchmark S&P 500's market capitalisation topping $20 trillion as investors bet tax cuts promised by President Donald Trump would boost the economy.Trump vowed last Thursday to make a major tax announcement over the next few weeks, adding fuel to a rally that had stalled amid worries about the potential impact of his protectionist trade stance and a lack of clarity about other policy reforms.The S&P has surged 9 percent since Trump's Nov. 8 election, boosted by expectations he would lower corporate taxes, ease regulations governing banks and increase infrastructure spending."Investors are willing to say the prospects for growth are higher now than they were, and they're not just saying it, they're committing capital," said Jamie Cox, managing partner of Harris Financial Group in Richmond Virginia.The S&P 500 financials index .SPSY jumped 1.4 percent, with banks leading the way. The industrial sector .SPLRCI gained 1.1 percent. The two sectors are seen benefiting heavily from Trump's policies.
Strong economic data in recent weeks has been supported by upbeat corporate results. S&P 500 companies are on track for their strongest profit growth in nine quarters, according to Thomson Reuters I/B/E/S."What is underlying this whole Trump rhetoric is that fundamentals in the world, including the U.S., are getting better," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management.At 2:05 p.m. ET, the Dow Jones Industrial Average .DJI was up 0.78 percent at 20,427.17 points, while the S&P 500 .SPX gained 0.59 percent to 2,329.78.
The Nasdaq Composite .IXIC added 0.6 percent to 5,768.30.Apple (AAPL.O), a component of all three indexes, rose 1.1 percent and was on track to close at a record high for the first time since 2015. Goldman Sachs increased its target price for Apple's shares on expectations of strong iPhone sales this year.
Verizon Communications fell 0.8 percent after the telecom carrier said it was bringing back an unlimited data plan, sparking fears of a price war. AT&T (T.N) fell 1.7 percent, T-Mobile (TMUS.O) sank 2.8 percent and Sprint (S.N) fell 1.2 percent.Advancing issues outnumbered declining ones on the NYSE by a 1.70-to-1 ratio; on Nasdaq, a 1.47-to-1 ratio favored advancers.The S&P 500 posted 71 new 52-week highs and no new lows; the Nasdaq Composite recorded 182 new highs and 17 new lows. (Additional reporting by Yashaswini Swamynathan in Bengaluru; Editing by Bernadette Baum)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.