Even amid the latest salvo in the Twitter wars between President Donald Trump and Congress, Wall Street is optimistic that the fighting factions can find their way to tax reform.
Goldman Sachs is currently assigning a 65 percent chance that the multiple sides in the tax debate can come to some kind of agreement in 2018. If so, that would push the stock market higher, with the S&P 500 hitting 2,610, or roughly 2.5 percent from Monday's opening level, according to the firm's analysis.
That's not a lot of impact, though it could be argued that much of the 2017 rally, which has pushed the index up nearly 14 percent, has been pricing in tax reform. David Kostin, Goldman's chief investment strategist, said tax reform's progress will outweigh a muted earnings season to push stocks higher.