On Friday, Wall Street indexes advanced with gains in consumer stocks such as Costco Wholesale assisting in a wide recovery. The S&P 500 dropped for the majority in a month on Thursday following Republican Senators Marco Rubio and Mike Lee dropped to the back the bill without adjustments to child tax credits.
“What Rubio was looking for is more help for the lower-income people, child tax credits. That’s something that can easily be adjusted, so the bill will move forward,” stated Andre Bakhos, managing director at Janlyn Capital.
“Things are looking like this (tax bill) will get through. But the market is going to be sensitive to any inkling that it’s going to be a problem.”
This year stocks have rebounded strongly, partly on the idea of corporate tax cuts that U.S. President Donald Trump promised to during his election campaign last year. The bill, in its current state, proposes a corporate tax cut to 21% from 35%. The stock markets are anticipated to see a spike in trading volume as the session continues with traders likely to close hedging positions of futures, options and stocks or continue to hold at the last minute.
At 9:33 a.m. ET (1433 GMT), the Dow Jones Industrial Average gained 129.05 points, or 0.53 percent, at 24,637.71 and the S&P 500 advanced 13.49 points, or 0.51 percent, at 2,665.5. The Nasdaq Composite jumped 24.34 points, or 0.35 percent, at 6,880.87.
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The S&P 500 and the Dow were on track to record four straight weeks of gains, while the Nasdaq was poised to post its first increase in almost three weeks. Advancing issues outnumbered decliners on the NYSE by 1,885 to 572. On the Nasdaq, 1,428 issues increased and 852 dropped.