Dow jumps 142 points to record as Street cheers Senate passing tax bill

U.S. stocks traded higher on Monday as investor sentiment was boosted by the Senate narrowly passing a major tax bill over the weekend. Shares of companies that stand to benefit the most from lower tax rates, like banks, led the gains. The Dow Jones industrial average rose 142 points, with Boeing and Walt Disney leading advancers on the 30-stock index. The Dow also hit a record high and briefly traded more than 300 points higher. The S&P 500 gained 0.3 percent, with financials and telecommunications as the best-performing sectors, rallying 2.1 percent and 1.8 percent, respectively. The index also reached an all-time high. The Nasdaq composite lagged, trading 0.6 percent lower as Facebook, Alphabet and Netflix all traded lower. “You’re seeing tech lagging and financials leading. This is some rotation on the back of the Senate vote,” said Lindsey Bell, investment strategist at CFRA. In the early hours of Saturday morning, Senate Republicans managed to narrowly pass a bill to revamp the country’s tax system. The final vote came out as 51-49 in favor, after Republicans had to rework the bill late on Thursday. “Everyone who owns stock is happy with the tax bill vote,” said Trip Miller, managing partner at Gullane Capital Partners. “Net-net, this is good news for Corporate America.”

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