All three major U.S. stock indexes closed at record highs for the second day in a row as President Donald Trump promises tax reform plan is coming, oil prices rallied and energy and material shares gained.
The S&P 500 rose 0.36% to hit a record close of 2,316. The Dow Jones Industrial Average increased 0.48% to close at 20,269, a new record. The Nasdaq scored its fourth consecutive closing record, gaining 0.33% to 5,734. All three indexes hit new closing records on Thursday after the president promised he would soon cut taxes for businesses.
Most of the S&P 500 sectors ended the day in the green. The energy and materials sectors led markets higher. Anadarko Petroleum (APC) , Exxon Mobil (XOM - Get Report) and Schlumberger (SLB - Get Report) posted gains of about 1%. Nike (NKE - Get Report) and Caterpillar (CAT - Get Report) were the leading gainers on the Dow.
The President met with Japanese Prime Minister Shinzo Abe on Friday discussing security and trade issues between the countries. At the press conference, Trump said, "The U.S.-Japan alliance is the cornerstone of peace and stability in the Pacific region." Japan is the fourth largest trading partner with the U.S.
The president on Thursday, in a meeting with airline and airport executives, said that lowering the "overall tax burden on American business is big league. That's coming along very well. He added, "We're way ahead of schedule, I believe. And we're going to announce something I would say over the next two or three weeks that will be phenomenal in terms of tax."
Sam Stovall, CFRA's chief investment strategist, said that Trump's positive comments about cutting taxes were giving markets additional reason to be optimistic.
"We are benefiting right now from the Trump hype, but my worry is that we are also starting to hear some sniping," Stovall said in a phone interview. "So the progression will go from hype to snipe to gripe, where we are excited about what he said he's going to do, and now we have people questioning whether that's going to happen."
"This first cut is certainly one of the deepest in the history of OPEC output cut initiatives," the IEA said, adding, "The oil market is very much in a wait-and-see mode."
The preliminary University of Michigan Consumer Sentiment Index for February fell to 95.7 from 98.5 in January and came in lower than economists expected.
U.S. import prices in January rose 0.4%, more than economists had expected. Export prices rose 0.1%.