Wall Street, dollar, surge higher after Trump tax talk

Thu Feb 9, 2017 4:48pm EST
 
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By Hilary Russ

NEW YORK (Reuters) - Wall Street stocks surged to record highs on Thursday and the U.S. dollar and bond yields rose after U.S. President Donald Trump said he would release a "phenomenal" tax plan in the next few weeks.

Investors have been waiting for details on Trump's election campaign pledge to stimulate economic growth with large-scale fiscal stimulus through infrastructure spending and tax cuts.

The three main U.S. stock indexes ended in record territory as most sectors gained. Financials, which have soared since the election, were the best-performing group, up 1.4 percent after three sessions of declines, while energy shares gained 0.9 percent.

In a meeting with airline executives, the president said his administration will be announcing "something phenomenal in terms of tax" over "the next two or three weeks".

The Dow Jones Industrial Average rose 118.06 points, or 0.59 percent, to end at 20,172.4, the S&P 500 gained 13.2 points, or 0.58 percent, to 2,307.87 and the Nasdaq Composite added 32.73 points, or 0.58 percent, to 5,715.18.

The U.S. dollar rose more than 1 percent against the yen to a six-day high, the euro fell to the day's low against the dollar, and the greenback saw a one-week high against the Swiss franc.

Benchmark 10-year U.S. Treasury note yields were at 2.393 percent after hitting a three-week low of 2.325 percent Wednesday.

"It's been a broad-based dollar rally, driven by the headlines that Trump plans to announce something phenomenal on taxes in the next few weeks, in his words," said Kathy Lien, managing director of BK Asset Management.   Continued...

 
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., February 7, 2017. REUTERS/Brendan McDermid