U.S. stocks rose on Thursday as technology stocks continued to regain lost ground from the past week.
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The Dow Jones industrial average jumped 100 points, while the S&P 500 gained 0.4 percent. Information technology was the second-best-performing sector in the S&P 500, advancing 0.7 percent.
Tech, which is the best-performing sector of the year, had been under pressure recently but was on track to post a three-day winning streak.
The Nasdaq composite gained 0.7 percent, as shares of Facebook, Netflix and Amazon all rose. The tech-heavy index was also boosted by gains in Broadcom.
Broadcom shares rose more than 1 percent after the chip maker reported better-than-expected earnings. The company’s bottom line was boosted by strong wireless chip demand.
MKM Partners analyst Ruben Roy said in a note Thursday the stock remains “attractively valued,” adding that “continued execution on core segment revenue and profitability, coupled with the inclusion of the highly accretive Brocade acquisition, should warrant some multiple expansion.”
Wall Street also looked to Washington for clues about tax reform and a possible government shutdown.
Senate members passed a bill on Saturday that would drastically change the U.S. tax code if it became law. Lawmakers in the Senate must now work with House members on a joint tax bill that must be passed before President Donald Trump can sign it. The House had passed another tax bill in November which differs from the Senate’s plan on key items.
“The House tax plan looks like a plan to us; the Senate version looks more like an agglomeration of bits and pieces designed to either capture needed votes (which it did) and/or be bargaining chips in negotiating with the House,” Jonathan Fenby of TS Lombard said in a note this week.
“As for reconciling the two plans, we think the House version generally wins out on the personal side and the Senate version predominates on the business side with one exception – no one-year delay on the corporate tax cut,” Fenby said.
Wall Street has been eagerly waiting for changes to the tax code, lifting stocks to record highs as they expect most companies will likely pay less in corporate taxes.
Investors are also weighing the possibility of a government shutdown. If lawmakers fail to craft a deal on government spending by the end of the week, the federal government could close until a deal is struck. President Donald Trump said Wednesday a shutdown “could happen.”
But Randy Frederick, vice president of trading and derivatives at Charles Schwab, said he isn’t worried about a government shutdown adversely affecting the market. “After the last three shutdowns, the market has actually gone up,” he said.
In corporate news, Sage Therapeutics skyrocketed 75 percent after announcing positive results from Phase 2 testing of its depression drug known as SAGE-217.
Shares of Shake Shack jumpe more than 7 percent after the fast-casual dining restaurant reported better-than-expected quarterly results.