ERIC PLATT: Tuesday, January 24 is in the books. This is the New York Minute. The S&P 500 surged to a new record high of 22,085, led by a rally in the material sector. The subsector set a new record as well, after Donald Trump backed the controversial Keystone XL pipeline.
Material names have gained nearly 6% this year, outpacing the broader S&P 500. Investors said that the slow reallocation to commodity linked stocks after 2014's drop will continue to provide the trade lift.
It has also been helped by rising inflation expectations, as investors go toward faster economic growth under US President Donald Trump and a more hawkish Federal Reserve.
So-called 5-year, 5-year forwards, a market measure of future expected inflation, rose on Tuesday. And traders put the odds of three hikes by the Fed this year at roughly 37%.
In bond markets, the 10-year treasury had a rocky day, with the yield climbing seven bips to 2.465%, reversing yesterday's entire rally. Gold dropped $9 on the day while oil was flat.
And that's the New York Minute.
