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For a second straight day, all four major US benchmark indices clocked record closing highs as expectations of President Donald Trump’s planned tax reforms continued to fuel risk-on sentiment.

The S&P 500 ended the day 0.5 per cent higher at 2,328.25 aided by a 1.1 per cent rise in the financials sector. Telecoms were the only sector to finish the day in the red.

The Dow Jones Industrial Average ended the day 0.7 per cent higher at 20,412.16 — with the share price weighted index rallying as Apple, the world’s largest company, ended the day up 0.9 per cent and closing at $133.29 on expectations that sales of the next iPhone will help revive its revenues.

The moves signalled that the Trump reflation trade, which in the simplest terms refers to selling bonds and buying stocks that benefit from high growth, still had some legs.

Meanwhile, the Nasdaq Composite finished up 0.5 per cent at 5,763.96 and the Russell 2000, the small cap benchmark, climbing 0.2 per cent into the close to 1,391.84.

Elsewhere, the yield on the US 10-year Treasury note, which moves inversely to price, climbed 2.3 basis points to 2.43 per cent. Meanwhile, gold, considered a safe haven asset, slid 0.7 per cent to $1,225.96 a troy ounce.

Copyright The Financial Times Limited 2017. All rights reserved.
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