NEW YORK – United States stocks gained after the biggest technology stocks rebounded from their worst selloff in more than a year as the dollar slipped.
The Dow Jones Industrial Average climbed past 24,000, while the S&P 500 Index was poised for its longest monthly winning streak since 2007 as the Senate tax bill headed for a marathon debate. The euro strengthened along with the British pound as Brexit negotiators moved closer to a divorce agreement. Treasury yields were little changed, capping the least turbulent month for 10-year notes in almost four decades.
Progress over U.S. tax reform this week had prompted traders to rotate out of tech stocks, the year’s best performers, and switch to firms seen benefiting most from a potential reduction in the corporate tax rate such as banks. Technology companies are expected to see little boost, as the industry’s average effective tax rate of 18.5 percent is already lower than the new level of 20 percent proposed by Republicans.
An up-or-down vote in the Senate could happen before the end of this week. In a sign of the cloudy outlook for the bill, Republican Senator Susan Collins of Maine said it “would be very difficult” to support the measure in its current form.
Data showed U.S. consumer spending settled back in October to a still-decent pace after the biggest increase since 2009, as a post-storm surge in auto sales cooled. Incomes remained robust and inflation showed progress toward the Federal Reserve’s goal.
Oil fell, reversing a rally prompted by speculation OPEC had agreed to extend production cuts. The Stoxx Europe 600 rose less than 0.1 percent. Earlier, Hong Kong and South Korean-listed shares tumbled, while Japanese stocks gained. South Korea’s won slid after its central bank said it would keep an accommodative policy stance after raising interest rates for the first time since 2011.
Brendan Walsh is a reporter for Bloomberg News.
