The market’s resilience in 2017 is indeed remarkable.
Consider that we’ve only hit a few speedbumps all year on the road to a series of new-high mile markers. One of those speedbumps was hit Tuesday, as market leadership in the large-cap tech issue helped the NASDAQ Composite crumble some 1.6% in the session.
Yet today, stocks have rebounded nicely. The NASDAQ is up 1.2% leading up to Wednesday’s final hour, and many leading sectors, such as semiconductors and super-cap internet stocks, were spearheading the bullish charge.
As for Tuesday’s pullback, that had a lot to do with the surprise move by the Senate to shelve the health care reform bill, at least for now. The market looked at that as a sign that President Trump’s pro-growth agenda was in jeopardy.
Yet while I think any big health care legislation may be in trouble, the market still is hopeful that tax reform can be done by early next year. As long as that hope remains alive, the resilient bullish tailwind likely will blow through the corner of Wall and Broad.
Of course, this rally isn’t just about hope. It actually is more concrete than that. In fact, if you’re looking for someone, or something, to blame for 2017’s surge in stocks… well, just blame it on exchange-traded funds (ETFs).