The revived U.S. tax cut hopes under President Trump brought the Wall Street to bounce back on Thursday, and Nasdaq hit a new high.
It finished 0.9% higher (5,916.7 points) than the previous record set in March.
Companies including Apple, Facebook, Starbucks, and Netflix that are on Nasdaq saw gains of more than 1%
The S&P gained 0.7% to 2,355.8 points, while the Dow Jones Industrial Average rose to 20,578.7 points; an increase of 0.8%
The last month or so saw an increased pressure on the U.S. stocks as President Trump’s economic policy weakened and uncertainty about Syria, North Korea, and French presidential election mounted, but an upbeat tone from the executives restored confidence in U.S. growth, and mostly positive results were seen this week.
The chief market strategist at TD Ameritrade, JJ Kinahan said:
“Not only have the earnings been good, but there’s a good picture being painted by the CEOs.”
The analysts specifically pointed out U.S. Treasury Secretary Steven Mnuchin’s remarks about cutting taxes this year as a source of confidence.
Mr. Kinahan added:
“What Mnuchin said is what the markets have been wanting to hear. Him giving that ounce of hope was great.”
Also on Thursday, Visa reported quarterly results that were better than expected. After the bell on Wednesday, solid numbers from American Express sent its shares 6% higher on the Dow.