What Supported the S&P 500, NASDAQ, and Dow?
After regaining strength last week, the S&P 500 opened higher on Monday and closed the day at the highest levels in three weeks. The market sentiment improved due to decreased geopolitical tensions amid France’s presidential election. Nine out of 11 major sectors of the S&P 500 gained on April 24. The financials sector and industrials sector led the rally in the market.
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Macron leads in France’s presidential election
Centrist Emmanuel Macron and far-right leader Marine Le Pen’s led in the first round of France’s presidential election. So far, the results eased concerns about France exiting the European Union. Emmanuel Macron and Marine Le Pen are getting ready for the run-off on May 7. The polls for the second round gave more than a 20% lead to Macron. The first round in the election eased political tensions in European markets and triggered a relief rally in global markets. The S&P 500 rose 1.1% on Monday, while France’s CAC 40 index rose 4.1%.
Speculations about tax cuts
In addition to France’s presidential election, the sentiment in US markets improved due to news that President Trump plans to act on a corporate tax reform plan this week. On April 29, he will have been in office for 100 days. Corporate income tax is expected to be cut from 35% to 15%. President Trump’s pro-growth policies like tax reforms and infrastructural spending are prime factors for the market’s rise to all-time highs in 2017. However, the lack of clarity on the policies caused a brief pullback in the market. According to the Wall Street Journal, US Secretary of the Treasury Steven Mnuchin and National Economic Council Director Gary Cohn will have a meeting on Tuesday with key GOP congressional leaders about tax cut plans.
The Dow Jones Industrial Average closed at a three-week high of 20,763.89—a gain of 1.1%. The NASDAQ Composite Index closed at record highs. It rose 1.2% on April 24 and closed the day at 5,983.82. In the next part, we’ll discuss the S&P 500’s top gainers and losers on April 24.