Dollar jumps as Trump announces forthcoming 'phenomenal' tax plan
- Author: Zachary Reyes Feb 15, 2017,
Feb 15, 2017, 23:44
The three major US stock indexes closed at record highs for the second day in a row as President Donald Trump promises tax reform plan is coming, oil prices rallied and energy and material shares gained.
The biggest theme for investors is that Trump's tax plan will move quickly and he has always maintained that it is going to be very aggressive, said Uriel Cohen, founder of Alpine Global in NY.
"US equities are adding to yesterday's rally following a promise of a "phenomenal" tax plan in the next 2-3 weeks by President Donald Trump, helping ease heightened trade and immigration concerns", said analysts at Charles Schwab brokerage.
After Mr. Trump's announcements, S&P 500 rose to close at a record high.
"Lowering the overall tax burden on American business is big league", Trump said in a meeting with airline executives.
A post-election rally has sent Wall Street's indexes to record highs on bets that Trump would usher in an era of tax cuts, simpler regulations and higher infrastructure spending.
"Further elucidation of Mr Trump's policies - both stimulatory and protectionist ones - is also a key for the Federal Reserve". Financials, which have soared since the election, were the best-performing group, up 1.4 per cent after three sessions of declines, while energy shares gained 0.9 per cent. The dollar index, which tracks the greenback against a basket of six major currencies, edged up to 100.67 .dxy , on track to gain 0.8 percent for the week.
Brent crude settled up $1.07, or 1.92 percent, at $56.70 a barrel, and USA crude settled up 86 cents, or 1.62 percent, at $53.86.
Candy Crush Saga maker Activision Blizzard surged 13.7% after announcing a stock buyback and the lifting of its dividend, despite disappointing quarterly numbers.
Mead Johnson was up 4.7 percent after Reckitt Benckiser finalised a $16.6 billion deal to buy the infant formula maker.
Skechers USA was up 11.2 percent in light trading after its fourth-quarter revenue beat expectations.
MI consumer sentiment index dropped to 95.7 in February from a 13-year higher, from 98.5 last month, suggesting that United States shoppers have cooled on their expectations on their finances.