Analysts said sentiment remained strong after Federal Reserve Chair Jerome Powell signalled yesterday a possible interest rate cut. Trump has called for the Fed to cut key interest rates, which would be the first in more than a decade.
Powell, chosen by Trump to run the Fed but now out of his good graces, has worked hard to build relations among lawmakers, and even on a Democratic-controlled committee won plaudits and encouragement to stay on the job.
The Dow shot above 27,000 points to set a new intraday record, while the S&P 500 briefly broke the 3,000 point level.
The market rallied through much of June after the central bank first signaled that it's prepared to cut rates to offset slowing global growth and the fallout from US trade conflicts.
Giving evidence to Congress, Powell said that many Fed members saw the case for action during its June meeting.
"Apparent progress on trade turned to greater uncertainty, and our contacts in business and agriculture reported heightened concerns over trade developments", Powell said, noting that business investment, an important component of economic growth, "seems to have slowed notably" in the last few months.
Waters, who chairs the House Financial Services Committee, told Yahoo Finance that her intent in asking the question was to "get rid of any uncertainties in the markets and with Wall Street about what is going on". Traders will be eyeing European Central Bank minutes and Powell's testimony before the Senate Banking Committee on Thursday for further clues.
But relentless pressure from President Trump for a Fed rate cut could complicate matters for a central bank that prizes its independence. "But Wednesday's message was clear, the data is softening - particularly on the inflation side - and downside risks are significant", Erlam said.
Powell repeated a pledge the Fed made in its June policy statement that officials would "act as appropriate to sustain the expansion". Powell offered the same terse reply he's given in the past when asked about Trump's attacks on his leadership and the president's insistence that he has authority to remove the chairman: Powell said he intends to serve out his full four-year term, which ends in early 2022. Until very recently, the chance of a modest quarter-point cut was put at 70% and a steep half-point cut at 30%.
"We see no solution to the challenges drug manufacturers face regarding growing rebates".
While China-U.S. trade tensions have calmed with a resumption of talks by phone between top envoys, friction with France looms after President Donald Trump's administration launched an investigation into French plans for a special tax targeting big tech companies.
"What happens when it stops cutting (one and one for insurance purposes?) and what happens if the US-China trade sitch [sic] goes awry?"