U.S. Stocks Stumble After GOP Tax Bill Passage: Report
Republicans sold their recently approved tax bill as a channel to boost U.S. businesses, but stock indexes closed lower on Wednesday for the second straight day following the passage of the GOP tax bill.
“The Dow Jones Industrial Index fell 0.11 percent, while the Nasdaq and Standard and Poor’s 500 finished 0.8 percent and 0.4 percent below open,” CNBC reports.
Stocks soared to record highs during the Obama administration and continued during President Trump’s first year as president.
Investors expected Republicans to slash tax rates for corporations. But while the final passage of the tax bill might seem like a green light for investors to pour more into stocks, some Wall Street veterans say that traders are now looking to see how the bill will impact the economy and future economic policy.
Republicans passed the sweeping tax overhaul on Wednesday. The bill cuts the corporate tax rate from 35 percent to 21 percent, and includes several tax credits meant to encourage businesses to expand and hire. But corporations haven’t done so even with the soaring economy and the tax loopholes.
President Trump has frequently boasted about the stock market’s performance on Twitter, and said Tuesday that investors haven’t fully digested the benefits of the Republican tax plan.
“Stocks and the economy have a long way to go after the Tax Cut Bill is totally understood and appreciated in scope and size,” Trump said in a Tuesday tweet.
Congress also faces a Dec. 22 deadline to fund the government or risk a shutdown.