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After a brief pause, Wall Street is back to its record-setting ways.
The Nasdaq Composite closed at a new all-time high on Tuesday, with the S&P 500 not far behind with sentiment brightening sentiment across trading desks.
The tech-heavy Nasdaq climbed 0.7 per cent to 6,025.5 — its first ever close above the 6,000 mark. The small-cap Russell 2000 was up 1 per cent to 1,411.3, having hit an intra-day record earlier in the day. Meanwhile, the S&P 500 gained 0.6 per cent to 2,388.6.
Equities have gotten a boost after the results of the French elections on Sunday eased one short-term risk. At the same time, the Trump administration has been taking an increasingly optimistic tone on tax reform, saying on Monday that it intends to push the corporate tax rate down by 20 percentage points to 15 per cent.
Lower taxes would increase corporate America’s profits and spark higher levels of economic growth, according to analysis from numerous investment banks following the November election. However, the failure of the White House to repeal and replace Obamacare has cast a shadow on the administration’s ability to enact fiscal measures.
Meanwhile, investors continued to unwind positions in havens that were built up ahead of the French vote. The 10-year Treasury yield, which moves in the opposite direction of the price, was up 0.0646 percentage points to 2.338 per cent. Gold slid 1 per cent to $1,263 a troy ounce.