US markets lose momentum despite generous tax reform proposal

By Trevor Hoey. Published at Apr 27, 2017, in Features

After rallying nearly 450 points in two days, the Dow took a breather overnight as it fell 0.1% to close at 20,975 points. Market commentators were pointing to a number of factors that may have contributed to the retracement. Some felt that there was disappointment regarding the lack of detail in President Trump’s tax reform proposal that was released during the trading session.

There is the obvious question of where the funds will come from to fill the gaping hole left by the proposed substantial tax cuts. However, White House commentators suggested that sustainable GDP growth of 3%, along with substantially reduced tax administration costs would cover the cuts.

Aside from the tax reform issue, some analysts suggested disappointing earnings results were responsible for the late session sell-off, while others felt that it was simply a case of profit-taking and repositioning following the substantial gains that materialised during the week.

There was little movement in the NASDAQ as it finished at 6025 points. However, it did experience the same steep fall in the last hour of trading as was evident with the Dow.

European markets also stabilised overnight with only nominal gains across the FTSE 100, DAX and the Paris CAC 40.

Both the FTSE 100 and the Paris CAC 40 gained approximately 0.2% to close at 7288 points and 5287 points respectively.

The DAX gained nearly 0.1% to close at 12,472 points.

On the commodities front, gold delivered the exact inverse reaction that is often associated between the safe haven precious metal and equities markets. In the last two hours of trading, it rallied from US$1260 per ounce to close at US$1270 per ounce.

While the oil price surged from sub-US$49 per barrel levels in early trading to hit a high of US$50.20 per barrel mid-session, it too went into freefall late in the day, closing at US$49.21 per barrel.

Iron ore was relatively flat at US$66.60 per tonne.

All base metals made nominal ground apart from nickel which fell nearly 1% to US$4.16 per pound.

Copper edged up slightly to close at US$2.57 per pound.

Zinc and lead delivered similar percentage gains, closing at US$1.18 per pound and US$0.99 per pound respectively.

The Australian dollar weakened slightly, and was fetching US$0.747 at the close. Technical analysts are watching the dollar closely as it appears to be on the verge of breaking below resistance levels which could see a retracement to circa US$0.72.

Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!