Markets experienced another week of record highs and the Dow closed above 23,000 marks for the first time as more corporate earnings met estimates amidst a favorable macroeconomic environment.
Although markets are trading at record-high levels, analysts are still optimistic that we may have more room to the upside. Especially as, on Wednesday, it appeared that U.S. Senate Republicans have garnered enough votes to pass the $4 trillion budget plan that is crucial to the tax reform legislation, which helped sustain the momentum this week.
In summary, we had another emblematic bullish week with historically low unemployment claims, and with the bipartisan deal to restore Affordable Care Act cost-sharing reduction payments, markets will likely feel more hopeful about the fate of the proposed tax cuts in the coming weeks.
Be sure to check out our previous week’s edition here, in which positive manufacturing data lifted market sentiments.