The NASDAQ is having an incredible time in the market today. In fact, today, the index smashed through the 6,000 mark for the first time in history. Now, the only question is whether or not the gains will continue.
Today, we’ll talk about the two big factors that helped the NASDAQ achieve this key milestone and what traders should be watching for ahead. So, let’s get right to it…
Donald Trump tax plan
As mentioned above, the NASDAQ broke through the 6,000 mark and is now trading well above this barrier. One of the two big reasons for this is President Donald Trump. You see, as we near the end of the first 100 days of the Trump Presidency, it looks like he is going to do something big, in particular with taxes.
You see, throughout his campaign, Donald Trump promised to change taxes in a big way. Not only would he reduce personal taxes, but he would reduce business taxes. He also took issue with the taxes associated with repatriating funds. Well, now it looks like all of that talk is going to turn into action.
Recently, Donald Trump said that his tax plan would be released on Wednesday or shortly thereafter. This is overwhelmingly positive news for the market. After all, taxes can be a massive burden. In fact, many companies refuse to bring their own money back from overseas because of the massive tax bill they would receive in doing so. Nonetheless, if Trump’s tax plan is all it’s expected to be, this could all change, and the market would definitely benefit from the news.
French presidential elections
Another big story that’s likely helping to push the NASDAQ upward is centered across the Atlantic Ocean. In fact, believe it or not, the French presidential elections are a key piece of the gains that we’re seeing in the NASDAQ at the moment.
You see, on Sunday, the first round of elections were held, leaving Marine Le Pen and Emmanuel Macron to face off. The truth is that while this doesn’t look like it would be big news for the NASDAQ, that’s not necessarily the case. The truth is that the global economy is very closely intertwined thanks to global trade. So, when positive news hits with regard to any large economy, chances are that the global market will be affected.
That’s exactly what we’re seeing here. You see, there are strong arguments that both Marine Le Pen and Emmanuel Macron would be great presidents from an economic and market standpoint. Because of that, the story that the two are the final two standing in the election is leading to global market gains.
What traders should be watching for ahead
Moving forward, the NASDAQ is likely to present several opportunities to traders. However, if you want to take advantage of these opportunities, you’ll need to keep close tabs on the news. In particular, pay attention to the two stories mentioned above. Any news with regard to the Donald Trump tax plan or the presidential elections in France will likely lead to big movements in the NASDAQ ahead.