US stocks retreat from records ahead of tax bill vote

The stock records yesterday were the latest in a series of all-time highs as the tax cut has progressed towards becoming law. — Reuters picThe stock records yesterday were the latest in a series of all-time highs as the tax cut has progressed towards becoming law. — Reuters picNEW YORK, Dec 19 — stocks declined early today, pulling back from two days of consecutive records ahead of the final congressional votes on a long-awaited US tax cut plan.

About 20 minutes into trading, the Dow Jones Industrial Average was at 24,731.53, down 0.2 per cent.

The broad-based S&P 500 shed 0.1 per cent to 2,687.39, while the tech-rich Nasdaq Composite Index shed 0.3 per cent to 6,975.84, a day after breaking through 7,000 for the first time.

All three indices finished at records yesterday, boosted by optimism surrounding the massive tax cut nearing completion. 



The tax cut plan, a cornerstone of the agenda of President Donald Trump and congressional Republicans, was expected to win approval from the House of Representatives later today, with final passage in the Senate likely early tomorrow.

The stock records yesterday were the latest in a series of all-time highs as the tax cut has progressed towards becoming law. 

Given the equity gains already, some analysts have said the market could pull back after the bill is actually passed, while others are eyeing S&P 500 targets of around 2,800 in anticipation of higher corporate profits once the tax reform takes effect.

US data showed construction of new US homes rose for the second straight month in November, with the volume of single-family houses started hitting a 10-year record. — AFP

Source: The Malay Mail Online



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