Wall Street eyes 2018 gains

The drop in the corporate tax rate in 2018, to 21% from 35%, is seen by many as the biggest factor for the stock market next year

US stocks are expected to keep rising in 2018 because a massive drop in the corporate tax rate is seen boosting the economy and corporate profits, but strategists say sizable gains could either be short-lived or elusive.

The bull market is on track to mark its ninth birthday in March, with the S&P 500 climbing 20 per cent for 2017 — its biggest increase since 2013. The drop in the corporate tax rate in 2018, to 21 per cent from 35 per cent, is seen by many as the biggest factor for the stock market next year.

Yet, Many on Wall Street cite potential pitfalls even though they see no signs of a recession.