FxWirePro: President Trump’s announcement on further tax cuts likely to support S&P500

Speaking earlier this week, President Trump dropped a hint that more tax cuts in coming. According to him, his administration will be unveiling more tax cuts proposal sometime prior to November and it would be something very special. Though the President didn’t unveil the details of the next tax cut after he signed tax cuts of around $1.5 trillion last December, he said that he would meet with Republican Representative Kevin Brady, chairman of the tax-writing House Ways and Means Committee, about the proposal.

The speculation over these new tax cut proposals is likely to keep S&P 500 supported, which in turn would provide support to global indices. Yesterday, the stock market was selling off all around the world. India’s Nifty was down more than 1 percent, so was Japanese Nikkei and some of the key European benchmarks were down more than 1.5 percent but that all changed after U.S. open, where S&P500 recovered and pulled up the global indices from their lows. S&P 500 is currently trading at 2728.