Technology companies lead stocks higher
Wall Street capped the week with broad gains, propelling the major stock indexes to a new set of milestones Friday.
Investors welcomed signs that Congressional Republicans were solidifying support for a major overhaul of the nation’s tax laws ahead of an expected vote next week.
Technology stocks led the gains, which more than wiped out the market’s losses from the day before. Health care companies and banks also posted solid gains. Energy stocks were the only laggard.
Small-company stocks, which stand to benefit most from lower corporate tax rates, rose more than the rest of the market.
“The tax bill seems to be the driver right now,” said Erik Davidson, chief investment officer at Wells Fargo Private Bank. “The market just thinks it will get done.”
The Standard & Poor’s 500 index rose 23.80 points, or 0.9 percent, to 2,675.81.
The Dow Jones industrial average gained 143.08 points, or 0.6 percent, to 24,651.74. The Nasdaq added 80.06 points, or 1.2 percent, to 6,936.58. The Russell 2000 index of smaller-company stocks picked up 23.47 points, or 1.6 percent, to 1,530.42.
The Dow, S&P 500 and Nasdaq closed at record highs and finished the week with gains.
The indexes were headed higher early on as investors watched developments in Washington with the Republican-led tax overhaul bill. GOP leaders moved to placate Florida Sen. Marco Rubio, who had said Thursday that he would vote against the bill unless the child tax credit was beefed up.
By Friday afternoon, congressional Republicans had finalized the bill, expanding the child tax credit, and winning Mr. Rubio’s support. The move provided a major boost for the GOP lawmakers in the Senate who are trying to hold together a razor-thin majority to pass the bill in a vote next week.
Technology stocks, which are leading the market this year, notched solid gains. Intel rose $1.30, or 3 percent, to $44.56.
“We had seen some rotation out of it the last few weeks,” said Jim Davis, regional investment strategist at U.S. Bank Wealth Management.