This is a huge week for US economic data but it’s bound to tell the expected story that the Yanks continue to grow at a nice pace, justifying the elevated levels of their stock market indexes. However, there remains one market-influencing issue that gets sorted this week and that’s these damn Trump tax cuts.
The odds are shortening that these tweaked tax cuts will be given the thumbs up by Congress but the question is will it send stocks up once we get concrete evidence that they will happen?
The economy and US company profits have underpinned the stocks rally this year. The Dow Jones Index has gone from 19,762 at the start of the year to where it is now at 24,651 and that’s a 24% gain, but this has not simply been driven by an improving economy and better corporate bottom lines.