The major U.S. index futures are pointing to a roughly flat opening on Friday, with choppy trading likely to persist following the relatively lackluster seen in the previous session.
Traders may be reluctant to make any significant moves as they continue to digest the Republican tax reform plan and attempt to assess the path forward for the proposal.
A report from Bloomberg News said the vast majority of economists surveyed predicted that the tax reform plan would widen the budget deficit.
The Trump administration has argued that the stronger economic growth spurred by the tax cuts would offset the cost.
Nonetheless, the markets could benefit from window dressing, as some investors look to boost their portfolios on the final trading day of the third quarter.
Stocks turned in a relatively lackluster performance during trading on Thursday, with the major averages spending much of the day on opposite sides of the unchanged line. Despite the choppy trading, the S&P 500 reached a new record closing high.
The major averages all ended the day in positive territory, although the Nasdaq inched up just 0.19 points or less than a tenth of a percent to 6,453.45. The Dow rose 40.49 points or 0.2 percent to 22,381.20, and the S&P 500 edged up 3.02 points or 0.1 percent to 2,510.06.
The choppy trading on Wall Street came as traders continued to digest the tax reform plan unveiled by Republican lawmakers and President Donald Trump.
The GOP plan includes a reduction in the corporate tax rate to 20 percent from 35 percent, a consolidation in the personal income tax brackets to three from seven, and a sharp increase in the standard deduction.
In remarks touting the plan in Indiana on Wednesday, Trump suggested the tax reform proposal represents a historic opportunity.
“I’ve been waiting for this for a long time,” Trump said. “We’re going to cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans.”
He added, “And we are going to bring back the jobs and…