Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. CNNMoney's Lydia DePillis contributed to this report. The catch, according to JPMorgan Funds chief global strategist David Kelly, is that the "bump to growth in 2018 will likely be a one-year wonder." JPMorgan anticipates a bigger boost of 0.6 percentage points. If the tax plan creates the kind of growth Trump has promised, the market could have a lot more room to run.īut Moody's recently estimated the tax law will only add 0.1 or 0.2 percentage points to 2018 GDP growth. Yet most market strategists are predicting more gains in 2018, especially as the impact of the tax overhaul are felt. Those who missed out on the bull market may wonder if it's too late to get in now. That gap has contributed to record-high wealth inequality in America. Roughly half of Americans participate in the market through an employee-sponsored retirement plan, according to a Pew analysis of Census Bureau data. Just 18.7% of taxpayers own stocks directly. Yet millions of Americans can't feel the stock market boom - because they have little to no money in the market. It's also created more wealth for many households. Consumer confidence has soared to 17-year highs. Many Americans view stocks as a barometer for the economy. The S&P 500 hasn't suffered a meaningful pullback since prior to the election, and volatility metrics have plummeted to record lows.Īt nearly nine years old, the bull market is now the second-oldest and second-strongest in history. The stellar year on Wall Street was unusual in that it lacked the type of sharp retreats that often accompany rallies. "70 Record Closes for the Dow so far this year!" Trump tweeted on December 18. Trump has repeatedly bragged about roaring stock prices. However, Wall Street is anticipating a big chunk of the money will go towards share buybacks and paying down debt - moves that should further juice stock prices. The hope is that companies will use some of that repatriated cash to create jobs with new spending on equipment and factories. Moody's estimates that mountain of offshore cash totals a record $1.4 trillion. Crucially, the tax law provides incentives that encourage companies to return foreign profits held overseas.
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