U.S. stocks closed higher Wednesday after the release of the GOP's tax plan framework and as investors eyed higher interest rates.
The S&P 500 hit an all-time high of 2,511.75 but failed to set a record close. Financial stocks climbed 1.3 percent and information technology stocks also rose more than 1 percent as the best performers in the index. Utilities, real estate investment trusts and consumer staples led index declines.
"The whole sentiment of the strong market is I think due to the tax relief hope," said Peter Cardillo, chief market economist at First Standard Financial.
The Dow extended its gain after the House Freedom Caucus, a group of conservative GOP lawmakers, endorsed the Trump tax reform plan outlined on Wednesday. The plan includes softer tax treatment for American companies to bring back profits they have held abroad, a process known as repatriation that is boosting shares of companies like Apple and Microsoft.
The Nasdaq composite outperformed, closing up more than 1 percent in its best day since Aug. 22. The three major indexes closed within half a percent of their all-time highs.