What political development will move markets the most?

Bryan R. Smith | AFP | Getty Images

The Wall Street Bull sculpture is seen in the Financial District on December 8, 2016 in New York.

Republicans’ years-long attempt to repeal Obamacare seemingly collapsed last week after three GOP senators, including John McCain, cast “no” votes. Despite the failure, President Donald Trump’s administration appeared to continue pushing for the approval of a new health-care bill.

Meanwhile, some have turned their focus to developments in Republicans’ tax reform efforts. Earlier last week, top Republicans sketched out plans — including a simplified tax code and lower corporate tax rates — after giving up on a proposal to introduce a border adjustment tax.

Tax reform is one of the core pillars of the Trump administration’s attempt to stimulate economic growth in the U.S., and market watchers expect corporate tax reform to drive the market rally further — with some expecting a “tantrum” if tax reforms fail to be passed.

Nonfarm payrolls due at the end of the week could also be a market mover, with investors looking at jobs and wage growth metrics for signals on how the Federal Reserve’s monetary policy will be shaped for the rest of the year.