US stocks surged on Thursday amid optimism around the GOP tax bill after Sen. John McCain threw his support behind it.
The Dow Jones Industrial Average spiked as much as 1.6%, breaking the 24,000 threshold for the first time, while the S&P 500 climbed 1% and the more tech-heavy Nasdaq 100 rose 0.8%.
The unabashed strength comes one day after the prospect of a successful tax bill threw US equities for a complete loop. On Wednesday, red-hot technology stocks took a beating, and bearing the brunt of the selling was the elite FANG contingency — consisting of Facebook, Amazon, Netflix and Google — which had roughly $60 billion in market value erased, the most in five years. The group rebounded almost a full percentage point on Thursday.
$60 billion sounds like a lot until you realize that Facebook, Amazon, and Google are worth a combined $1.5 trillion, making that $60 billion a rounding error. Good thing I ignored those losers in 2016 and early 2017 who said that Trump would be bad for stocks.
As I predicted, the tax cuts are happening, which will be Trump’s first legislative accomplishment. I hope, come reelection, he will do something about immigration.