Wall Street set for a positive open with Dow futures up triple digits, as US tax plan sign-off lifts sentiment

Drew Angerer | Getty Images News | Getty Images

Traders work on the floor of the New York Stock Exchange (NYSE) ahead of the closing bell, November 30, 2017 in New York City.

U.S. stock index futures pointed to a strong positive open on Monday, as sentiment was boosted by news that the U.S. Senate narrowly passed a major tax bill over the weekend.

In the early hours of Saturday morning, Senate Republicans managed to narrowly pass a bill to revamp the country’s tax system. The final vote came out as 51-49 in favor, after Republicans had to rework the bill late on Thursday.

The GOP however still need to overcome future obstacles in order for the Senate and the House to craft a joint bill, which will then be presented to President Donald Trump. Republicans hope a deal will be achieved by Christmas.

Trump tweet

Consequently, the news put a smile on investors faces ahead of Monday’s open, with the Dow Jones industrial average pointing to higher open, by more than 200 points, at 4:00 a.m. ET.

While tax was supposed to dominate sentiment in the previous trading session, markets closed lower on Friday after having been taken on a roller coaster ride.

U.S. stocks finished in the red Friday after a report emerged stating that former national security advisor Michael Flynn was directed by Trump to talk to Russians.

ABC News had initially reported on Friday, citing an unnamed source, that Flynn was getting ready to testify that he made proposals to the Russian ambassador at Trump’s request, during the run-up of the 2016 U.S. election. The media outlet went on to correct the report, stating that Flynn would likely say that Trump’s instructions had occurred after the election took place.

Shifting to Monday, investors will be poring over news that U.S. drugstore operator CVS Health is to buy Aetna, a U.S. health insurer, for $69 billion. The agreement is seen as one of 2017’s biggest deals so far in the M&A (merger and acquisition) space.

Ascena Retail and Coupa Software are expected to publish earnings on Monday. Meanwhile on the data front, factory orders are set to be published at 10 a.m. ET.