Investing.com – The expected vote in the House of Representatives later Thursday is seen by analysts as a litmus test of President Donald Trump’s future ability to deliver on his pro-business agenda.
Wall Street suffered heavy losses Tuesday as doubts emerged about Trump’s pledges for huge tax cuts, $1 trillion spending on infrastructure and cutting red-tape weighing on business.
The run-up in stocks since the November election has been premised on the so-called pro-growth Trump agenda.
Corporate tax cuts would likely boost earnings per share as would deregulation by cutting costs, while sparking more investment.
Overhauling infrastructure would support industrial companies and push up economic growth.
Concerns also remain that the Trump administration could be distracted by a FBI probe into possible Russian interference in the presidential election campaign and connections to the Trump camp.
If the bill is passed it could depress safe-haven assets such as gold and U.S. Treasuries and weigh on the healthcare sector.
A positive vote would benefit major indices and their related ETFs.