How will Trump's tax bill affect the stock market?

**Trump's tax bill is likely to have a mixed impact on the stock market**:

1. **Corporate Tax Rates**: The tax bill's extension and further reduction of corporate tax rates could benefit stock fundamentals by lowering business costs. This could lead to higher corporate earnings, which might positively influence the stock market.
2. **Deficit Spending Concerns**: However, the tax bill's potential to increase deficit spending may negatively affect the market in the short term. Higher deficits can lead to inflationary pressures and a subsequent rise in interest rates, which could be detrimental to the stock market, especially for sectors that are sensitive to interest rates.
3. **Market Reaction to Looming Deadlines**: The stock market may also react to the approaching deadlines related to the tax bill and other policy changes. The expiration of the 90-day tariff pause on July 9 could lead to increased uncertainty and potential volatility in the market.
4. **Investor Sentiment**: Investor sentiment is likely to be influenced by the outcome of the legislative process. The passage of the tax bill in the Senate has created uncertainty, with investors closely watching for progress on trade talks and the bill's subsequent actions in the House.
5. **Long-Term Prospects**: In the long run, the tax bill could be perceived as pro-growth and pro-business, which might support market growth. However, the immediate impact could be tempered by the short-term concerns regarding deficit spending and the potential for inflation.

In conclusion, while the tax bill has the potential to benefit the stock market through lower corporate taxes, the market will also need to navigate the risks associated with increased deficit spending and the upcoming policy deadlines. The overall impact will depend on how these factors are received by investors and how they influence market sentiment and economic conditions.