Trump Bump Stock Market Rallies, After Being Under Siege
US stocks ended sharply higher this afternoon, with financial and energy shares surging as data showed US consumer confidence soaring to a more than 16-year high, as the Trump Bump market - which seemed under siege the last 8 days - rallied.
Tuesday, March 28, 2017 - 00:00
The S&P 500's best day in nearly two weeks came after a record-setting rally for stocks in the wake of President Donald Trump's election in November had stalled this month. The Dow Jones Industrial Average snapped an eight-day losing streak, which had been its longest run of losses since 2011.
US consumer confidence surged to a more than 16-year high in March amid growing labor market optimism, while the trade deficit in goods narrowed sharply in February. The economy's strengthening fundamentals were bolstered by other data showing further increases in house prices in January. The data underscore what has been going on in this whole rally, and that is that confidence is pretty high and optimism is high and that has been underpinning the resiliency of the equity markets.
The Dow Jones Industrial Average rose 150.52 points, or 0.73 percent, to 20,701.5, the S&P 500 gained 16.98 points, or 0.73 percent, to 2,358.57 and the Nasdaq Composite added 34.77 points, or 0.6 percent, to 5,875.14.
US central bankers are gradually removing monetary stimulus as inflation moves back up to their 2 percent target. At 4.7 percent in February, the nation’s unemployment rate is at their estimate of maximum use of labor resources.
Banks slammed by concern Donald Trump would have trouble getting regulatory roll-backs through Congress rallied, as investors shifted focus from policy uncertainty to data showing consumers more upbeat than any time since 2000. Energy producers advanced as crude topped $48 a barrel. Ten-year Treasury yields climbed above 2.4 percent.
While Friday’s failure by Republicans to pass health-care reform rattled the reflation trade, attention turned Tuesday to data bolstering arguments that the world’s largest economy is on firm footing. Washington also stepped up promises to proceed with the tax reform that Wall Street has focused on since the election, while Federal Reserve officials reiterated that two more rate hikes in 2017 seem appropriate.
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