US Stocks Bolstered by Financials amid Tax Cut Hopes
Big gains for financials
Last week, the US stock market continued to make new highs almost on a daily basis. US stocks are rising due to hopes that the Trump Administration will complete a tax deal in the near future that will substantially benefit corporates.
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The S&P 500 (SPX-INDEX) (SPY) rose 0.86% last week and closed at 2,575.21—a return of nearly 15% for the year. The Dow Jones Industrial Average (DJI-INDEX) (DIA) rose 2% and closed 23,328.63. The technology-heavy NASDAQ Composite (COMP-INDEX) posted comparatively moderate gains of 0.35%. The losses in consumer staples and technology stocks were balanced out by big gains in financials (XLF) and healthcare stocks.
Bolstered by tax reform hopes, the S&P 500 Financials Index rose 1.97%, while the S&P Insurance Select Industry Index (SPSIINS) rose 1.35%. All of the major bank stocks rose more than 2%. Bank of America (BAC) rose 5.2%. Other major gainers included Morgan Stanley (MS), JPMorgan Chase (JPM), Goldman Sachs (GS), and Wells Fargo (WFC). They rose 4.93%, 3.81%, 2.60%, and 2.29%, respectively. Morgan Stanley and Goldman Sachs had stellar results that boosted their stocks.