US stocks trade at record highs on tax-cut optimism

   •  All three major indices surge to fresh intraday record highs. 
   •  Confidence over the passage of tax cut bill supportive of the bullish mood.

Major US equity indices opened with solid gains on Monday, with all three major indices trading at record highs on tax cut expectations.

Optimism that the Republicans will have the required votes they need for passage of the long-awaited tax overhaul bill, especially lowering of the corporate tax rate to 21% from 35%, remained supportive of buoyant sentiment around equity markets. 

However, with a slim 52-48 Senate Republican majority, some uncertainty over the passage of the bill remains and might now hinder the bullish momentum. Meanwhile, with some doubts creeping in over the pro-growth effect of the tax reforms, investors also seemed to turn a bit weary over the continuation of ongoing strong bullish trajectory. 

Nevertheless, during the opening hour of trade, the Dow Jones Industrial Average surged nearly 200-points to 24,845, while the broader S&P 500 Index added over 17-points to 2,693. Meanwhile, tech-heavy Nasdaq Composite Index climbed around 55-points and jumped closer to the 7K milestone.