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US stocks open higher ahead of tax bill vote

US stocks open higher ahead of tax bill vote

New York: US stocks opened higher on Monday, with major indices hitting intraday records, as investors awaited a vote on tax reform.

House and Senate Republicans are planning to pass a package this week, with major elements including lower corporate and top individual tax rates,” Xinhua news agency reported.

US President Donald Trump told reporters Friday morning, “I think that we are going to be in a position to pass something as early as next week, which will be monumental.”

“The focus of this tax plan is obviously to improve business conditions. That is no secret, and should not be looked at as a negative,” Stephen Guilfoyle, president of Sarge986 LLC, was quoted as saying.

US equities have posted solid gains and notched record highs several times since the Election Day, partially boosted by expectations of lower corporate taxes.

Shortly after the opening bell, the Dow Jones Industrial Average increased 186.84 points, or 0.76 per cent, to 24,838.58. The S&P 500 rose 16.68 points, or 0.62 per cent, to 2,692.49.

The Nasdaq Composite Index was up 45.17 points, or 0.65 per cent, to 6,981.75.

US stocks witnessed solid gains for the last week, as investors digested the Federal Reserve’s decision to hike interest rates while anticipating details of a Republican tax bill.

IANS