The major U.S. index futures are pointing to a higher opening on Monday after Senate Republicans narrowly approved a massive tax reform bill early Saturday morning.
The Senate voted 51 to 49 in favor of the bill known as the Tax Cuts and Jobs Act, with the vote largely coming down along party lines.
Senator Bob Corker, R-Tenn., was the only Republican to vote against the bill amid concerns about the legislation’s impact on the budget deficit.
“With the great vote on Cutting Taxes, this could be a big day for the Stock Market – and YOU!” President Donald Trump said in a post on Twitter.
With the vote to approve the bill, lawmakers from the Senate and House will need to go to conference to work out differences in the bills passed by the two chambers.
After falling sharply in late morning trading, stocks climbed well off their worst levels of the day but still ended the day modestly lower. The Dow and the S&P 500 pulled back off the record closing highs set in the previous session.
The major averages all finished the session below the unchanged line. The Dow slipped 40.76 points or 0.2 percent to 24,231.59, the Nasdaq fell 26.39 points or 0.4 percent to 6,847.59 and the S&P 500 dipped 5.36 points or 0.2 percent to 2,642.22.
For the week, the major averages turned in a mixed performance. While the Nasdaq slid by 0.6 percent, the Dow surged up by 2.9 percent and the S&P 500 jumped by 1.5 percent.
The late-morning sell-off on Wall Street came on news that former National Security Adviser Michael Flynn has agreed to cooperate with prosecutors in the investigation of Russian meddling in last year’s election.
Flynn pleaded guilty to lying to the FBI about conversations with the Russian ambassador, signaling that he had reached an agreement with Special Counsel Robert Mueller’s team.
A report from ABC News said Flynn is prepared to testify that then-candidate Donald Trump directed him to make contact with the Russians.
However, stocks regained ground as Senate Majority Leader Mitch McConnell, R-Ken., declared that Republican leaders were successful in winning over enough reluctant lawmakers to pass their tax reform bill.
The news out of Washington overshadowed a report from the Institute for Supply Management showing a modest slowdown in the pace of growth in manufacturing activity in the month of November.
The ISM said its purchasing managers index dipped to 58.2 in November from 58.7 in October, although a positive reading still indicates growth in manufacturing activity….