The Dow Jones industrial average and the S&P 500 posted gains for the fifth straight week on Friday after President Donald Trump signed a bill that revamps the U.S. tax code.
The major indexes closed slightly lower for the day on Friday, however.
Trump signed a bill on Friday that slashes the corporate tax rate to 21 percent from 35 percent. The president was able to sign the bill after Congress approved another bill to keep the federal government funded through Jan. 19.
Investors have been eagerly awaiting this, as they bet that lower taxes will boost companies' bottom lines.
Ben Snider, a strategist at Goldman Sachs, said in a note Thursday, said he expects the tax bill to lift S&P 500 earnings by 5 percent.
"Although we believe that US equities have broadly priced the passage of tax reform, considerable uncertainty remains," Snider said. "In particular, investors still lack visibility into the impact of specific provisions at the company level and how corporate behavior will respond to the new tax code and the incremental cash flows it creates. This uncertainty and shifts in positioning suggest that opportunities still exist – particularly at the micro level – as the market digests the implications of tax reform."
Markets have been on a tear this year as Wall Street awaited lower corporate taxes. The S&P 500 is up 19.9 percent in 2017, while the Dow and Nasdaq have risen 25.4 percent and 29.4 percent, respectively.
Craig Callahan, founder and CIO of Icon Advisors, said he expects to see another 10 percent bump higher in stocks over the next year. "We think the market is right at fair value," he said. Callahan added he expects tech to outperform in 2018, continuing the trend from 2017.
In economic news, personal income rose 0.3 percent last month. Economists were expecting a 0.4 percent gain. Durable goods orders, meanwhile, also disappointed, rising 1.3 percent in November. Economists polled by Reuters had forecast an increase of 2 percent. New home sales, meanwhile, raced to a 10-year high in November.
In corporate news, Nike shares slipped 2.3 percent after the athletic apparel maker reported a drop in gross margins. The company's quarterly earnings and revenue topped estimates, however.
Biotechnology company Ignyta soared 72 percent after Swiss drug maker Roche agreed to buy the company for $27 per share, a 74 percent premium to its closing level from Thursday.