Equities fell in the last trading session before Christmas, as President Donald Trump signed the GOP's landmark tax reform bill and a funding measure to keep the government running through Jan. 19, 2018.
The Dow Jones Industrial Average decreased 0.11% to 24,754.06, the S&P 500 declined 0.05% to 2,683.34 and the Nasdaq Composite Index slipped 0.08% to 6,959.96.
Wilmington Trust Chief Investment Officer Tony Roth said in an interview that the impact of the tax reform bill is most apparent in the bond market, where yields are starting to reflect more optimism for economic conditions in the near term.
"Even if we get some flattening of the yield curve that's outweighed by the by the fact that the front end of the yield curve is being pushed up," Roth said.
Roth added that the tax bill appears to be boosting expectations for businesses, where a lower corporate tax rate will give management more opportunities for capital expenditures. Banks have been particularly eager to reap the rewards of the 21% corporate tax rate, and companies have already started moving by announcing higher wages and holiday bonuses in light of the bill's passage.
Most of the large banks fell in trading Dec. 22, as JPMorgan Chase & Co. declined 0.35% to $107.45, Citigroup Inc. dropped 0.44% to $75.49 and Wells Fargo & Co. ticked down 0.10% to $61.55. Bank of America Corp. increased 0.20% to $29.88.
In notable movers, Bedminster, N.J.-based Peapack-Gladstone Financial Corp. added 2.37% to $36.28 and New York-based CIT Group Inc. increased 1.39% to $50.35. Mattoon, Ill.-based First Mid-Illinois Bancshares Inc. fell 4.84% to $38.72.
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