President Donald Trump on Wednesday said his tax reform plan will make the stock market rise by “leaps and bounds.”
“Stock Market has increased by 5.2 Trillion dollars since the election on November 8th, a 25% increase,” Trump said on Twitter Wednesday morning.
Trump added that the U.S. economy has the lowest unemployment rate in 16 years and, “if Congress gives us the massive tax cuts (and reform) I am asking for, those numbers will grow by leaps and bounds.”
…if Congress gives us the massive tax cuts (and reform) I am asking for, those numbers will grow by leaps and bounds. #MAGA
— Donald J. Trump (@realDonaldTrump) October 11, 2017
Since November 8th, the Dow Jones Industrial Average, a blue chip index comprised of 30 large U.S. companies, is up 25%.
The benchmark S&P 500, a broader index of U.S. corporates, is up about 20%, while the tech-heavy Nasdaq is up 27%.
As of September, the unemployment rate was 4.2%, the lowest since February 2001.
Trump added Wednesday that, “It would be really nice if the Fake News Media would report the virtually unprecedented Stock Market growth since the election. [Need] tax cuts.”
Wall Street analysts are somewhat split on whether the market’s rally is “pricing in” tax cuts — that is, reflecting expectations that tax cuts will pass — or if a tax package would be an additional boost to a market enjoying its best year since 2013. It is, however, more widely acknowledged that the actual passage of a tax plan would be positive for markets.
Of course, this is not the first time Trump has both bragged about the stock market’s gains since his election or railed against the media for not reporting on this rally. Trump’s tweets also come ahead of an expected speech in Harrisburg, Pa. on Wednesday that will continue his pitch on the need for tax reform to the American people.
Yahoo Finance’s Rick Newman reports that in his speech on Wednesday Trump will emphasize the benefits to blue-collar workers, namely truck drivers, of his ambitious tax plan that right now faces a number of obstacles in Congress.
Greg Valliere, chief global strategist at Horzion Investments, wrote Wednesday that markets “have to worry about Bob Corker,” a reference to the Tennessee Senator whose recent spat with President Trump has called into question whether Republican lawmakers would have the votes to pass a tax plan.
“Most of the Washington Twitterstorm is irrelevant, just noise in the Reality Show that has overtaken this city,” Valliere wrote in a note to clients Wednesday morning. “But the bitter fight between President Trump and Bob Corker is different – it jeopardizes the entire tax bill, to be blunt.”
Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland
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