Hello traders everywhere. The Republican-controlled U.S. House of Representatives passed a sweeping tax bill which will be the most significant overhaul of the U.S. tax code in over 30 years. The Senate had already voted in favor of the bill, and now we wait for President Trump to sign the bill into effect.
The proposed changes include cutting the corporate tax rate to 21% from 35% from Jan. 1, which could boost company earnings and pave the way for higher dividends and stock buybacks.
The three major stock indexes are holding steady near record highs, but relatively unchanged on the day after the bill was passed. Stock futures had risen sharply before the open, with Dow futures climbing more than 100 points only to sharply fall from those highs as the market opened for regular trading. The cause for the drop was a rapid rise in interest rates that saw the 10-year U.S. yield hit 2.497%, its highest level since March 21, while the two-year yield rose to its highest level since October of 2008.
Key levels to watch this week:
S&P 500 (CME:SP500): 2,598.87
Dow (INDEX:DJI): 23,545.02
NASDAQ (NASDAQ:COMP): 6,734.13
Gold (NYMEX:GC.G18.E): 1,255.30
Crude Oil (NYMEX:CL.F18.E): 56.82
U.S. Dollar (NYBOT:DX.H18.E): 92.13
Bitcoin (CME:BRTI): 8,889.74