Brendan McDermid | Reuters
Trader Peter Tuchman works on the floor of the New York Stock Exchange, (NYSE) as the Dow Jones Industrial Average crosses 24,000, in New York, U.S., November 30, 2017.
The Senate passed a key bill over the weekend that moved the Republicans closer to overhauling the corporate tax system and significantly lower corporate taxes.
“What we saw was the market moving into stocks that clearly benefit from lower corporate taxes,” said Quincy Krosby, chief market strategist at Prudential Financial.
Financials, meanwhile, are up more than 3 percent over the past week. In theory, the proposed changes would help banks and financials more than tech companies, since they currently pay a higher effective tax rate.
“It seems like since we’ve entered December, there has been some reallocation in the market,” said Daniel Deming, managing director at KKM Financial. “There seems to be a lot of churning underneath of what is a pretty calm surface.”
Investors also looked ahead to a potential government shutdown. If Congress fails to craft a deal on government spending, the federal government could close until a deal is struck.
In corporate news, Snap shares shot 9.3 percent higher after Barclays said the social media could hit a “turning point” in 2018.
AutoZone shares also ticked higher after the company reported better-than-expected quarterly results.
McDonald’s stock gained 1.5 percent to lead the Dow after Jefferies upgraded it to buy from hold. In a note to clients, they said McDonald’s “use of data and technology … should attract a higher multiple over time, while leading to higher returns.”