US stocks trade with strong gains as tax bill concerns fade
| • Investors shrugged off the latest worries over progress for tax cuts.
• Traders largely ignore slightly weaker manufacturing data from the US.
Major US equity indices opened with strong gains on the last trading day of the week as investors shrugged off renewed concerns over the passage of a long-awaited tax bill.
During the opening hour of trade, the Dow Jones Industrial Average rallied over 120-points to 24,626, while the broader S&P 500 Index climbed 12-points to 2,664. Meanwhile, tech-heavy Nasdaq Composite added nearly 18-points to 6,875.
Today's strong up-move followed a weaker closing on Thursday when Republicans' tax overhaul plan hit a roadblock after Senators Marco Rubio and Mike Lee declined to back the legislation without changes to child tax credits.
Optimism over corporate tax cuts had been one of the key factors behind the stock markets’ strong bullish run over the past one year and analysts now say that a failure to push through the legislation could end the current rally.
Nevertheless, two of the key indices - Dow, S&P, remain on track for their fourth straight week of strong gains, despite today's slightly weaker than expected US manufacturing data - Empire State Manufacturing Index and Manufacturing Production.
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