It’s almost getting boring: the three major U.S. stock market indexes keep hitting record highs.
The Dow Jones Industrial Average DJIA, -0.05% the Nasdaq Composite COMP, +0.52% and the S&P 500 SPX, +0.10% are all responding favorably to the tax changes coming out of Washington now.
Namely, the Senate Budget Committee passed the tax reform bill on a party-line vote, setting it up for a vote by the full Senate, as early as Thursday. That bill probably won’t create many new jobs and will likely entrench dynastic wealth in America for generations to come, while ultimately not helping middle-class taxpayers much. But it’s great for the profits of publicly held corporations and their shareholders, so investors are celebrating.
Also, Jerome Powell, President Trump’s nominee to replace Janet Yellen as Federal Reserve chair, has said he’ll likely continue his predecessor’s policy of graduallyraising the federal funds rate and shrinking the central bank’s balance sheet, while lightening up a bit on financial regulation. On Wall Street’s wish list, that’s check, check, and check.