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A Tax Bill Before the Holiday
As we headed into the long holiday weekend, the markets continued to climb as tax reform moved forward.[1] For the week, the S&P 500 closed up 0.29%, the Dow rose 0.43%, and the NASDAQ gained 0.35%.[2] International stocks in the MSCI EAFE increased by 1.23%.[3]
Before leaving for his holiday vacation, President Trump signed a new tax bill and a measure to temporarily delay a possible government shutdown. Supporters of the $1.5 trillion tax cut, which dramatically reduces the corporate tax rate, believe it will encourage businesses to invest, hire more workers, and increase wages.[4] Some companies are already celebrating by offering bonuses to their employees and promising to improve infrastructure in the workplace.[5]
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Tax Plan Boosts Stocks
Domestic markets were up last week as tax reform became more likely. On Friday, multiple previously undecided Senators announced they would back the combined House and Senate bill, and stocks reacted by hitting new record highs.[1] For the week, the S&P 500 gained 0.92%, the Dow added 1.33%, and the NASDAQ grew by 1.41%.[2] International stocks in the MSCI EAFE increased 0.13%.[3]
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Strong Markets for the Holidays
As the holiday season progresses, the markets continue to impress. Last week, many energy, financial, and industrial sector stocks helped drive performance.[1] Hitting record highs yet again, the S&P gained 0.35%, and the Dow jumped 0.40% for the week.[2] Meanwhile, the NASDAQ fell slightly by 0.11%, and the MSCI EAFE rose 0.08%.[3]
Solid labor market conditions and a rebounding retail climate are helping to support the economy as the year closes.[4] Here are some developments that stood out last week:
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Andy Hipple Speaks @ Virtua Hospital
Andy presenting to the Virtua Medical Group on the topic of Financial Wellness.
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Looking Beyond Politics
Markets went for a wild ride last week—especially on Friday. In fact, on December 1, the S&P 500 had its largest fluctuations since the day after the 2016 presidential election.[1]
Nonetheless, two of the major domestic markets hit new record highs on Thursday and ended the week with sizable gains. The S&P 500 added 1.53% and the Dow gained 2.86%.[2] Meanwhile, the NASDAQ lost 0.60% and international stocks in the MSCI EAFE gave back 0.95%.[3]