U.S stock market hit record intraday highs on Tuesday. The S&P 500 hit 2,151.96 shortly after the open, breaking past the previous record of 2,143.16 on Monday. The Dow Jones Industrial Average hit all times high of 18,353.76. NASDAQ Composite erases all 2016 loses.
The Stoxx Europe 600 climbed 1% which boosted by auto and banking stocks. The moves came after Japanese shares ended higher on hopes for fresh fiscal stimulus from Tokyo. U.S Treasury bond yields continued to increase from recent record lows, as investors shifted out haven investments and pushed down bond prices.
“What is driving the market today is political stability in both Japan and the UK and a global drive for yield, which central banks are going to support,” said John Brady, a senior vice president at R.J. O’Brien & Associates in Chicago.
U.S stock market have climbed since Friday, wiping out the losses caused by the Brexit, as a better than expectation payrolls report helped allay investor concerns. At the same time, traders are pricing in little chance of an interest-rate hike from the Federal Reserve anytime soon, with September 2017 being the first month that has even odds of a raise, implying a potential so-called “Goldilocks” scenario for equities in which the economy expands but at a lukewarm pace to hold off further monetary tightening.
Investors start pay attention to corporate results this week, with analysts projecting a profit decline of 5.7 percent at S&P 500 companies in the second quarter. That would make it the fifth straight quarterly drop, the longest streak since 2009. Bank earnings are forecast to slide 11 percent in the period.
“We’ve been so overwhelmed with larger macro and political issues for the last couple of cycles that we now have the chance to focus on individual companies and see how they’re doing,” said Peter Jankovskis, who helps oversee $1.9 billion as co-chief investment officer of Lisle, Illinois-based OakBrook Investments. “That could be very positive for the market.”