Yahoo Finance S&P 500; US Indexes Fundamental Daily Forecast – Lack of Clarity Over Tax-Reform Creating Pressure
The major U.S. stock indexes were down across the board on Friday, led by declines in the Dow and S&P 500 Index, which posted their first 2-week losing streak since August.
In the cash market, the benchmark S&P 500 Index settled at 2578.85, down 6.79 or -0.26%, the blue chip Dow Jones Industrial Average finished at 23358.24, down 100.12 or -0.43% and the tech-based NASDAQ Composite closed the session at 6782.00, down 11.29 or 0.17%.
The weakness in the Dow was led by Wal-Mart, which posted a 2 percent loss, after reaching a new all-time high on Thursday following the release of a better-than-expected earnings report.
Weakness in the utilities and information technology sector helped pressure the S&P 500 Index. The NASDAQ Composite was dragged down by declines in the shares of Amazon, Netflix and Alphabet.
Tax reform is the major story driving the price action with some investors describing the overall theme of the market at this time as “cautiously optimistic”.
Earlier in the week, Congressional Republicans took important steps toward the biggest U.S. tax code overhaul since the 1980s, with the House of Representatives approving a broad package of tax cuts and a Senate panel advancing its own version of the tax legislation sought by senior lawmakers and President Donald Trump.
After the House vote, the tax debate now moves to the Senate, where it could face delays due to resistance from some Republicans and most Democrats. Full Senate activity on the tax bill is expected to take place after next week’s Thanksgiving holiday.
Investors were also concerned over a report on Thursday that Special Counsel Robert Mueller’s investigators probing possible Russian interference in the 2016 U.S. election had subpoenaed Trump’s election campaign for documents.
We’re likely to continue to see a sideways to lower trade over the near-term until investors get clarity over tax reform. Next week is a U.S. holiday week. We expect to see a major drop in volume which should have a dramatic effect on market volatility.
This article was originally posted on FX Empire
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