JP Morgan (NYSE:JPM) and Goldman Sachs (NYSE:GS) leading the pack
The Stock Market rallied for the fourth straight day on Tuesday. This is counter to the subdued rally on Monday caused by the Manchester Terror attack. Investor sentiments once again seem to be on the rise, both the S&P 500 and the DOW is being pushed higher as a result.
The S&P broke above the 2,400 mark for the first time in a week. With a rise of 4.4 points or 0.2% to log at $2,398.42 on Tuesday night.
In addition the Dow Jones has risen by 43.08 points or 0.2% and to close on Tuesday at $20,937.91 after hours.
It was the Banks and financial institutions that help to provide the Index with this boost.
Both Goldman Sachs and JPMorgan pressed impressive gains on Tuesday to boost the Indices higher.
Goldman Sachs Inc. has risen by +1.68% meanwhile its compatriat JPMorgan Chase & Co had risen by +1.25%.
The two companies rose the blue chip index by 43 points. Meanwhile on the Dow it was pushed up by 32 points. The broader stock market booked its fourth straight advance, coming after a tough stretch for stocks last week, highlighted by the worst decline in months on Wednesday.
The overall environment is a little uncertain. This is because the market is concerned about whether or not President Donald Trump will be able to enact the Economic reforms he said that he would. The president needs to be able to make congress agree to and accept the reforms including, health care, tax cuts, boosts in infrastructure spending and deregulation. This is stalling due to turmoil in the american political arena.However the trend seems to be progressing despite the setbacks.
The only setback is in small caps which may threaten to derail the uptrend. Small caps as measured by the Russell 2000 has shown a slump. The biggest sell off in over a decade and it no longer mirrors the S&P 500 perfectly. This is usually a sign that an overall market sell off may be on its way. The positive may be that the markets are going through an uncertain period and that a rebound may be on its way. Right now ‘hold’ is the best strategy.