Nasdaq hits new high on tax cut hopes

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NYSE tradersImage source, Reuters

Wall Street bounced back on Thursday, with the Nasdaq hitting a new record high on revived hopes about US tax cuts under Donald Trump.

The Nasdaq finished 0.9% higher at 5,916.7 points - about 2 points higher than the prior record set in March.

Companies posting gains of more thab 1% on Nasdaq included Apple, Facebook, Netflix and Starbucks.

The Dow Jones Industrial Average rose 0.8% to 20,578.7 points, while the S&P 500 gained 0.7% to 2,355.8 points.

US stocks have been under pressure over the past month or so as the Trump economic agenda has languished and fears about Syria, North Korea and the French presidential election have mounted.

However, mostly positive results this week and a more upbeat tone from executives boosted confidence in US growth.

"Not only have the earnings been good, but there's a good picture being painted by the CEOs," said JJ Kinahan, chief market strategist at TD Ameritrade.

Analysts also pointed to remarks from US Treasury Secretary Steven Mnuchin expressing confidence about cutting taxes this year.

"What Mnuchin said is what the markets have been wanting to hear," Mr Kinahan said. "Him giving that ounce of hope was great."

Visa on Thursday reported better-than-expected quarterly results, while solid numbers from American Express after the bell on Wednesday sent its shares almost 6% higher on the Dow.