On Tuesday, the Senate Budget Committee approved the Senate's tax plan, bringing the upper chamber closer to a floor vote. This vote is slated to occur Thursday. Investors have been eagerly awaiting tax reform since the election in 2016, yet doubts over whether the Republican-led Congress could achieve this before the year is out continues to weigh on sentiment.
Stocks briefly pared gains on Tuesday after North Korea fired a missile that landed into the Sea of Japan — an intercontinental ballistic missile that state media said was capable of reaching the U.S. mainland. President Donald Trump responded to the news, stating that they would "take care of it."
On the data front, weekly mortgage applications fell 3.1 percent, while the second read on third-quarter GDP showed the U.S. economy grew at an annualized rate of 3.3 percent.
The pending homes sales index is due to be released at 10 a.m. ET, while the U.S. central bank's Beige Book is expected at 2 p.m. ET.
Speaking of the U.S. Federal Reserve, current Fed Chair Janet Yellen is expected to testify on the outlook of the U.S. economy before the Congressional Joint Economic Committee.
Meanwhile, San Francisco Fed President John Williams will be speaking at the 54th Annual Economic Forecast Luncheon, set to take place in Phoenix, Arizona. New York Fed President William Dudley will be in New Brunswick, participating in a fireside chat.