Stock indexes hit records as investors eye tax reform progress

Banks led a broad rally in U.S. stocks Tuesday, lifting the market to a milestone-shattering finish.

Gains by industrial stocks, retailers and health care companies also helped drive the major stock indexes to record highs.

Investors were encouraged by news that a Senate committee cleared the way for a tax reform bill to go before the full Senate. Financial stocks also got a boost from Federal Reserve chair nominee Jerome Powell, who told another Senate committee that the Fed would consider easing up on bank regulations.

Encouraging economic data and the latest batch of company earnings and deal news also helped drive the rally, which gave the Standard & Poor’s 500 index its best day since Sept. 11.

“When you’re in a market where you’re at new highs with the averages, in theory, nobody has losses,” said Mark Chaikin, founder of Chaikin Analytics. “Given seasonal patterns, I expect that we’ll see the market strong into year-end.”

The S&P 500 index rose 1 percent, to 2,627.04. The Dow Jones industrial average gained 255.93 points, or 1.1 percent, to 23,836.71. The Nasdaq composite added 0.5 percent, to 6,912.36. The Russell 2000 index of smaller-company stocks picked up 1.5 percent, to 1,536.43.

Gainers outnumbered decliners more than 2 to 1 on the New York Stock Exchange. — AP