Fund Library News Wire
| Friday, October 20, 2017
By Mike Keerma
Stock markets in the U.S. closed at record highs again this past week, as
the U.S. Senate passed a budget blueprint that would pave the way for the
Trump Administration’s plan to reform the unwieldy U.S. tax code. That,
along with a purported short list of candidates to lead the Federal Reserve
Board, had investor sentiment bubbling even higher, leading the blue-chip
S&P Composite Index to yet another record close and its sixth consecutive weekly gain, at 0.9%.
Nasdaq Composite Index also racked up a record high close on Friday, posting an advance of 0.4% on
the week. Toronto’s benchmark
S&P/TSX Composite Index gained 0.3% on the week, also its sixth consecutive weekly advance, buoyed
by strength in the materials sector and gains in financial stocks.
Gold, however, retreated 1.8% on the week, while
crude oil posted a gain of 1.3%.
Expectations for a U.S. tax cut were given added impetus last week at the
Senate passed a budget blueprint for the next fiscal year. The budget
blueprint isn’t the actually binding and doesn’t carry the weight of law.
That will come later as the debate intensifies and spending bills make
their way through the Republican-majority House and Senate before being
signed (or vetoed) by President Trump.
President Trump also revealed that he’s considering Stanford University
economist John Taylor (of the “Taylor Rule” fame) and Fed Governor Jerome
Powell as candidates to replace Janet Yellen as Chair of the Fed. Markets
seem neutral on which of these candidates might be the next Chairman, but
at least they weren’t negative.
Check Fund Library’s
Market Activity page regularly for active updates on key market indexes and commodities.
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