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The S&P 500 was poised to close in the black for the seventh straight day on Wednesday in its longest winning streak in more than 3 years.
The benchmark index climbed 0.3 per cent to 2,344.16 — pushing deeper into record territory and clocking its longest consecutive streak of gains since September 2013 — as stronger than expected economic data spurred confidence in the health of the US economy and as financials led the way on increasing odds of a March rate rise by the Federal Reserve.
The advance in the S&P comes as the four major US equity indices — including the Russell 2000 index of companies with a market value between $300m and $1bn — are all poised for a fourth straight day of record closing highs.
Indeed, the risk-on trade showed that despite higher odds for a rate rise next month and Fed chair Janet Yellen’s warning that it would be “unwise” to delay raising interest rates for too long, investors have taken courage from Ms Yellen’s upbeat outlook on the US economy.
The rally also signalled that the so-called Trump reflation trade appears to have regained its footing, with investors cycling out of bonds and buying stocks that are poised to benefit from higher growth, as investors’ await the president’s tax reforms.
A likely second quarter of earnings growth for corporate America and improving outlook or earnings and sales growth in the remainder of the year has also added to the investors’ bullishness.