Global markets trod water Thursday as a recent strong run sparked by Donald Trump’s election lost momentum and investors digested a fresh batch of European corporate earnings and minutes from the US Federal Reserve.
Nevertheless, Wall Street edged mainly higher and the Dow Jones Industrial Average looked set to reach a tenth consecutive all-time high and break a 30-year record.
And investors pondered statements from Treasury Secretary Steven Mnuchin, who said that President Donald Trump’s administration hoped to roll out new tax policies before the August recess on Capitol Hill.
“Numerous corporate results… and typically vague minutes from the latest US interest rate-setting meeting have given investors pause for thought,” said London Capital Group analyst Jasper Lawler.
“US stocks opened lower amid interest-rate uncertainty but soon turned higher to print yet another fresh record high for the Dow and S&P 500 as Treasury Secretary Mnuchin promised ‘very significant’ tax reforms would be passed by August,” Lawler said.
Appearing on CNBC on Thursday morning, Mnuchin said the Trump administration hoped to have a tax package enacted before August and return to 3 percent annual economic growth by the end of next year.
Mnuchin’s remarks were likely to help keep markets at their current dizzy heights by keeping hopes of prompt tax cuts alive, according to Patrick O’Hare of Briefing.com.
“From that standpoint, the old thought of tax reform continues to have staying power as a source of support that is keeping selling efforts in check,” he wrote.
Asian markets had ended the session lower as the recent Trump rally that has inflated global stocks since the beginning of the year finally appeared to run out of steam.
The day before, New York’s Dow index had racked up a ninth successive all-time high, but analysts said there was a sense that the advance may have gone too far.
