US Tax Plan passes, minimal reaction from Dow Jones
Yesterday the US passed President Trump’s much anticipated Tax Plan. Corporate taxes will be reduced by 14%, a move that has already prompted increases in minimum wage & the payment of staff bonuses at some employers (Wells Fargo, AT&T,Fifth Third Bancorp). The Dow, however, has responded rather casually, indicating that the expectation that this Bill would be passed was already factored in. Some of the undoubted profit-taking is just the usual end of year housekeeping, as traders reduce exposure for the next couple of weeks. Come the New Year though, there is little reason to suspect that the trend will reverse, and the Dow will again continue to reflect the business confidence that eluded President Obama for so many years. At the time of writing the Dow (#Dow30) is currently 150 points off its 24,870 high.