Friday's highly anticipated health-care vote could drive markets on another leg up, says one JPMorgan strategist.
David Lyon, global investment specialist at JPMorgan, believes that investors' focus on corporate earnings and economic growth has given way to a focus on politics, and the fate of the market now hinges on Washington. The vote is considered to be one of the key determinants of how the rest of President Donald Trump's policies will move forward, and the markets have rallied this year on optimism related to his proposed tax reforms, in particular.
"If the vote goes through, it will give markets the confidence that the administration can continue to move forward with their policies," Lyon said Thursday on CNBC's "Futures Now."
According to Lyon, if the health-care vote goes through, the markets could possibly turn back to rallying on strong fundamentals as Trump clears his first policy hurdle.
"I think it's how quickly they can get to corporate tax reform and repatriation so that the markets can again focus on fundamentals and look at corporate earnings growth, which we see as the key driver as always," said Lyon.
If that does occur, Lyon says that investors will see a "fantastic rest of the year" for stocks.
In the short-term, Lyon also mentions that more volatility lies ahead for the markets, and a small pullback could be ahead. All three major indexes were up Friday morning leading up to the vote.