The US stocks are on the rise with the start of the new year and S&P 500 and Nasdaq Composite reached record highs on the first day of 2018. The S&P 500 rose by 0.8% and closed at 2,695.79 points, marking a record level of closing, supported by growth in the energy and technology sectors.
The technological Nasdaq Composite rose by 1.5% to 7,006.90 points, which is also a record high. The index closed more than 7,000 points for the first time in its history.
The blue chip Dow Jones Industrial Average also rose by 104.79 points to 24,824.01 points, supported mostly by the shares of Disney, which appreciated by 4%.
As economic data is strong, investors are predicting that economic growth will turn into strong growth in profits, according to the economists. The US stocks ended in a record 2017, with the three major indices recording their highest values at all times. S&P 500, Dow and Nasdaq added 19.4%, 25.1% and 28.2%, respectively, to their value last year.
The shares rose during the last year following the good corporate profits, robust economic data and lower corporate tax expectations.
Last month, the President Donald Trump signed a bill that cut corporate tax in the US from 35% to 21%. Several companies have announced that they will give bonuses to their employees after Trump signs the bill that Trump himself reacted with in social networking.
The investors are also awaiting the publication of the jobs report in December on Friday. The economists expect the US economy to have added 188,000 jobs last month. The employment report on Friday will be the highlight of the first week of the new year.