This could invite additional algorithmic buying if momentum indicators remain positive through midday. Beyond seasonality, the market’s current momentum provides another compelling bullish signal. The S&P 500 is set to close out its fifth consecutive winning month, a relatively rare event. If the revenue is given back to consumers via tax cuts, U.S. economic growth “may not suffer too badly,” putting GDP growth expectations to an average of 1.5% annualized over the next four quarters, according to Capital Economics. However, if the additional tax revenue is used to pay down the budget deficit, it would lead to a fiscal tightening of over 2%, “which means the economy would be lucky to avoid a recession.” Dow futures current slightly red but holding above psychological 38,000 level. Market technicians emphasize this threshold as crucial for sustaining the long-term bullish channel in the Dow.