![Steven Mnuchin, U.S. treasury secretary, talked up tax cuts but said he didn't expect any acceleration in the US economy ...](/content/dam/images/g/u/d/y/l/m/image.related.afrArticleLead.620x350.gujvly.png/1487887426217.jpg)
Wall St floundered after hitting record intraday highs earlier in the overnight session as losses in tech stocks offset the impact of a jump in oil prices. But the Dow Jones still managed to extend its incredible streak of record closes to 10.
Oil rose more than 2 per cent after data showed a surprise decline in US inventories, suggesting a global oversupply may be ending. The S&P; 500 energy index jumped 0.6 per cent, led by gains in Exxon and Chevron. The sector also provided the biggest boost to the broader index.
The technology sector, however, dropped 0.3 per cent, largely due to losses in Nvidia, setting the Nasdaq up for its worst day of this month.
"What I like about this market is that (investors) seem to be a little more focused on fundamentals as opposed to looking at the volatility coming from politics," said Omar Aguilar, chief investment officer at Charles Schwab Investment Management.
Meanwhile, copper prices tumbled 3 per cent overnight - their biggest one-day fall since September 2015 - as worries about demand in top consumer China resurfaced after the country's housing minister suggested moves were afoot to stabilise the property market, while a firm dollar reinforced negative sentiment.
US stocks have been on a record-setting rally in the past two weeks after Trump said his administration would make a major tax announcement in the coming weeks.
US Treasury Secretary Steven Mnuchin told CNBC that he expected a "very significant" tax reform to be enacted by Congress' August recess. But Mr Mnuchin also said he didn't think the US economy would see a meaningful acceleration in economic growth until 2018. This may have tempered investors' enthusiasm, and the US dollar declined overnight, helping the bump higher in oil and pushing gold prices higher.
Mr Mnuchin also signalled no urgency to designate China a currency manipulator, contradicting an October pledge by then-candidate Donald Trump to direct his Treasury secretary to name China a manipulator on the first day of his administration.
"Optimism is a mile high, but an inch deep," said John Manley, chief equity strategist for Wells Fargo Funds Management in New York. "People are being pulled into this stock market. They're worried it's gone up too fast."
Today's Agenda
A little quieter day of profit results, including Corporate Travel Management, Automotive Holdings, Mayne Pharma, Super Retail Group, Charter Hall Group, Regis Healthcare, Billabong and NextDC.
Local data: RBA governor Philip Lowe is due to testify before the House of Representatives Standing Committee on Economics, in Sydney, at 9:30am AEDT.
Market Highlights
SPI futures is down 9 points at 5750.
AUD +0.1% at 77.1 US cents
On Wall St, Dow Jones +0.2% to 20,810, S&P; 500 flat at 2364, Nasdaq -0.4% 5836
In New York, BHP -2%, Rio -3.7%
In Europe, FTSE Euro Top 100 -0.2%, FTSE 100 -0.4%, DAX -0.4%
Spot gold +1.1% at $US1250.24/ounce
Brent crude +1.2% at $US56.50/barrel
Iron ore -3.1% at $US91.34/tonne
Copper -3% at $US5859/tonne
From Today's Financial Review
The $5.6 million dollar man: Ahmed Fahour's successor looks unlikely to receive such a generous paypacket after the government vows to place curbs on what Australia Post can pay its next CEO.
Chanticleer: Weathering the global airfare war: Conditions are actually pretty awful in the airline industry right now, but shareholders have been buoyed by Qantas's resilience to ride through periods of turbulence.
Perpetual embraces the EBITDA asterisk: The 130-year old Australian fund manager is not fooling anyone with its use of adjusted EBITDA.
Street Talk
Fundies hail a special CAB: Cabcharge Australia shareholders expect something special from their company when it hands down its half-year results today.
Moving on stationary: Private equity players are keen to make the most of an uncanny situation, which sees the country's three largest office supplies dealers up for sale.
Goldman Sachs trades Bain Capital's MYOB stake: Bain Capital has sold 100 million shares, or a 17 per cent stake, in MYOB Holdings at $3.55 apiece.
with Reuters, Bloomberg, AAP
Comments? Questions? Let us know what you think of Before the Bell. You can reach Timothy Moore at timothy.moore@fairfaxmedia.com.au