U.S. stocks traded higher on Monday as investors eagerly awaited a vote on a bill that would cut corporate taxes. A slew of corporate deals also helped lift sentiment.
The Dow Jones industrial average jumped 168 points. The S&P 500 gained 0.6 percent, with financials, energy and materials as the best-performing sectors. The Nasdaq composite advanced 0.8 percent.
The major averages hit intraday records.
“I think this is largely predicated on the belief that the tax plan is going to be passed tomorrow,” said Robert Pavlik, chief investment strategist at SlateStone Wealth. “With the belief that corporate taxes will go down, … investors think the market is not too expensive.”
Congress is expected to vote as early as Tuesday on a plan that would slash the federal corporate tax rate to 21 percent from 35 percent. Passing the bill would mark a big legislative win for Republicans, who have been pushing to revamp the U.S. tax code for most of 2017.
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