U.S. stocks broke new ground as the Dow climbed past 24,000 for the first time Thursday amid increasing signs of a federal tax overhaul.

Progress on tax legislation had prompted traders to rotate out of tech stocks, the year’s best performers, and switch to firms such as banks, which are seen as benefiting most from a potential reduction in the corporate tax rate.

 Image: Bloomberg News
Tech stocks, the year’s best performers, are not expected to benefit from the Republican’s tax plan.

Technology companies are expected to see little boost, as the industry’s average effective tax rate of 18.5% is already lower than the new level of 20% proposed by Republicans.

In addition to the Dow’s record-breaking climb, the S&P 500 was poised for its longest monthly winning streak since 2007 as the Senate tax bill headed for a marathon debate.

The biggest technology stocks rebounded from their worst selloff in more than a year. The euro strengthened along with the British pound as Brexit negotiators moved closer to a divorce agreement. Treasury yields slipped, capping the least turbulent month for 10-year notes in almost four decades. The Nasdaq Composite Index is up 26.9% this year.

Bloomberg News