S&P, Dow hit record highs as oil prices rally

Bengaluru

The S&P 500 and the Dow Jones Industrial Average hit record intraday highs on Thursday as a rally in oil prices added to optimism about US President Donald Trump’s proposed tax reforms.

Oil prices surged 2 per cent on Thursday after data showed a surprise decline in US inventories, suggesting a global oversupply may be ending.

The S&P 500 energy index jumped 0.9 per cent, led by gains in Exxon and Chevron. The sector also provided the biggest boost to the broader index.

US stocks have been on a record-setting rally in the past two weeks after Trump said his administration would make a major tax announcement in the coming weeks.

Treasury Secretary Steven Mnuchin told CNBC on Thursday that he expected a “very significant” tax reform to be enacted by Congress’ August recess.

“There is an incremental buy on the market everyday,” said Drew Forman, co-head of sales and trading equity at Macro Risk Advisors in New York.

“However, people are getting complacent ... and we’re going to need to see some results from the president and the government on some of these policies before we see a huge breakout.” The S&P 500 has not moved more than 1 per cent in either direction since Dec. 7.

At 9:33am. ET, the Dow Jones Industrial Average was up 38.11 points, or 0.18 per cent, at 20,813.71. The index has hit record highs in nine of the past 10 sessions.

The S&P 500 was up 4.94 points, or 0.21 per cent, at 2,367.76 and the Nasdaq Composite was up 2.30 points, or 0.04 per cent, at 5,862.93.

All of the 11 major S&P 500 sectors were higher, with industrials and technology bringing up the rear.

A Labor Department report showed the number of Americans applying for unemployment benefit rose slightly more than expected last week, but the four-week average of claims fell to its lowest level since 1973, pointing to strengthening labour market conditions.

Advancing issues outnumbered decliners on the NYSE by 1,979 to 536. On the Nasdaq, 1,277 issues rose and 819 fell.

The S&P 500 index showed 35 new 52-week highs and one new low, while the Nasdaq recorded 56 new highs and four new lows.

The dollar, meanwhile, scuttled sideways after minutes of the latest US Federal Reserve meeting showed policymakers in no rush to raise interest rates.

— Reuters