On Monday, the Dow Jones Industrial Average rallied to a new high as investors raised their hopes of getting more benefits from the proposed corporate tax reform plan presented by the Republican Senate.
Most stocks especially those coming from the retail, financial, and technology sector rallied during the beginning of the week sending the Dow Jones Industrial Average to touch a new record high.
Over the weekend, the Republican Senate was able to pass a bill that would change the taxation system of the United States. This sent most stocks to trade by Monday’s early session higher. Currently, some concerns surrounding the tax reform bill includes obstacles in the future which may hinder the full implementation of the tax cuts as well as reworking the bill prior to being presented to U.S. President Donald Trump.
The recent events leading to the U.S. tax reform has pushed the Dow Jones higher by more than 20% as investors grew increasingly hopeful regarding the U.S. tax cuts. Given the recent performance of the Dow, some analysts have projected the index to rise above 25,000 sooner.
The Dow Jones closed above 24,000 last week as most stocks recovered from a steep decline during the earlier sessions that week on strong gains from healthcare and banking stocks. Energy stocks also contributed to the Dow Jones’ rally due to the price of crude oil rallying during Friday’s session on the decision of the OPEC to extend overall crude oil production by the end of 2018.
The 30-stock index was up by as much as 58.46 points to end at 24,2490.05 with stocks such as Boeing and Walt Disney being the biggest gainers of the session. The Dow Jones was also seen rallying by around 300 points during the trading session to an intraday high.
Banking or financial stocks also traded higher with companies such as Morgan Stanley, Citigroup, JPMorgan Chase & Co and Wells Fargo trading above 2% during the recent trading session while the Bank of America was up by more than 3%.