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Home>MARKET SNAPSHOT: Stock-market Climb Intensifies As House Passes Budget Resolution

MARKET SNAPSHOT: Stock-market Climb Intensifies As House Passes Budget Resolution

MARKET SNAPSHOT: Stock-market Climb Intensifies As House Passes Budget Resolution

10/05/2017

By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica

Constellation Brands climbs after earnings, outlook

U.S. stock-index gains accelerated deeper in to records on Thursday afternoon after the House of Representatives passed a budget resolution on Thursday--a step seen as setting the stage for an overhaul of the tax code.

What are stock benchmarks doing?

The Dow Jones Industrial Average rose 90 points, or 0.4%, to 22,749. The S&P 500 index rose 12 points to 2,549, a rise of about 0.5% with financials and technology sector leading the gains. The Nasdaq Composite Index was up 36 points, or 0.6%, to 6,570. All three indexes traded at or near intraday records.

What could drive markets?

After the House vote (http://www.marketwatch.com/story/house-passes-budget-resolution-in-key-step-for-tax-plan-2017-10-05), the Senate is planning to vote on a budget bill on Thursday, and GOP leaders are planning to write a single measure that will pass both chambers. Republicans are aiming to pass tax cuts through what is known as budget reconciliation, which requires just a simple majority in the Senate. Republicans currently control the Senate with 52 seats.

A persistent uptrend for stocks have been partially underpinned by the hope of tax cuts proposed by President Donald Trump, with a likelihood of the passage of a pro-business tax policy often propelling buying in assets perceived as risky.

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