Tax-reform optimism is setting the tone for trading both today and yesterday, as we’re seeing the DJIA and S&P 500 inch up toward record territory. The Dow reached 23,910 in earlier trading, with all components of the index gaining. The S&P 500 hit 2,629- led by financials. The tech-heavy Nasdaq, however, took a dive and dropped over 100 points today.
A possible full Senate vote on the tax-reform bill on Thursday will be of main focus for market participants. This event is likely going to eclipse any rising geopolitical tension with North Korea- who had just recently tested another ICBM.
In cryptocurrency news, we’re seeing Bitcoin (BTCUSD) passing the $10,000 mark and into the $11,000 territory. While many analysts look at this as a major speculative bubble to crash, the unprecedented nature of cryptocurrencies has contributed to an unpredictable atmosphere that major institutions are attempting to become involved in. Whether or not we see major swings in this area, it is highly likely that Bitcoin and the myriad cryptocurrencies will be a new mainstay in the financial world. Look to equities that are involved in this sector, such as processor and graphics cards makers, e-commerce companies poised to accept crypto as payment, and other proxy stocks that may ride the boom.
At the time of publication, the DJIA is up 0.21%, or 48.87 points, at 23,887. The S&P 500 is trading at 2,622- down 0.20% from the open. The Nasdaq-100 is down 1.61% at 6,800.