Investors were set to push US equity benchmarks further into record territory on Tuesday, buoyed by higher oil prices and expectations of a hefty economic spending plan by the incoming Republican administration.
S&P 500 futures were firmer ahead of New York open and a day after Wall Street set a quartet of records, with all four of the country’s main equity indices closing at fresh peaks.
The strong showing from US stocks overnight helped power European stocks higher on Tuesday, with the benchmark Euro Stoxx 600 rising as much as 0.7 per cent to 342.61 in early trading. European equities are up 2 per cent since the US election.
Markets on both sides of the Atlantic have been helped by a rebound in crude prices, but the biggest reason for the recent rally on Wall Street has been speculation that Mr Trump will introduce a package of corporate tax cuts, infrastructure spending and a regulatory rollback for banks.
“The strength in oil has been at least somewhat helpful, but I would argue that it is the overall fundamental backdrop that has primarily driven this move,” said Randy Frederick, a strategist at Charles Schwab.