Markets rise, US stocks hit record highs

Markets rose on Tuesday.

The S&P 500 rose 0.7 percent to a record high, the STOXX Europe 600 rose 0.4 percent and the Nikkei 225 rose 0.7 percent.

With the stock market rally resuming, Goldman Sachs sees another strong year in 2018 if the US Congress passes tax reform.

Peter Costa, president of Empire Executions, told CNBC that while stocks are overpriced, “I don't think there's anything within the next couple of months that we're going to see that's going to slow [the market] down”.

However, Vanguard chief economist Joe Davis wrote that the “sky is not falling, but our market outlook has dimmed”. Vanguard expects returns in the medium term of 4 to 6 percent, the most cautious outlook it has had on future stock returns at any time during the post-financial crisis economic recovery.