U.S. stocks rebounded on Friday as Wall Street reassessed concerns arising from news that the White House could seek a hike to the capital gains tax.

The S&P 500 rose 1.1% to 4,180.17 led by financials and materials. The S&P 500 closed the turbulent week with just a 0.1% loss.

Wall Street came off a turbulent session for equities after multiple news outlets reported Thursday afternoon that President Joe Biden is slated to propose much higher capital gains taxes for the rich.

Meanwhile, U.S. taxable domestic investors own only about 25% of the U.S. stock market, according to UBS. The rest of the market is owned in accounts that aren’t subject to capital gains taxes such as retirement accounts, endowments and foreign investors, so the impact on overall stock prices should be limited even with a higher tax rate.

Corporations have for the most part managed to beat Wall Street’s forecasts thus far into earnings season. Still, strong first-quarter results have been met with a more tepid response from investors, who have not, to date, snapped up shares of companies with some of the best results.

Plan A : Long if market supported firm above 4160. Targets are 4176, 4191 and 4207.

Plan B : Short if market failed to support above 4160. Targets are 4135, 4110 and 4081.

Futures contracts tied to the major U.S. stock indexes held steady in early morning trading on Monday as investors braced for one of the busiest weeks of the first-quarter earnings season.

The tech-heavy Nasdaq Composite climbed 1.4% to 14,016.81.the Nasdaq fell 0.5% and 0.3% for the week, respectively.

The week ahead is a major one for corporate earnings, with about a third of the S&P 500 set to update investors on how their businesses fared during the three months ended March 31. Some of the largest companies in the world are scheduled to publish results this week such as Apple, Microsoft, Amazon and Alphabet. 

The Fed, which meets on Tuesday and Wednesday, is expected to defend its policy of letting inflation run hot, while assuring markets it sees the pick-up in prices as only temporary. Chairman Jerome Powell will host a press conference Wednesday afternoon to discuss the Federal Open Market Committee’s decision.

Plan A : Long if market supported firm above 13887. Targets are 13917, 13948 and 13979.

Plan B : Short if market failed to support above 13887. Targets are 13848, 13800 and 13766.

To subscribe to real time signal, email to us at futures.coin@gmail.com for details. Sign up today for May subscription.

Plan A : Remain buy as long as oil price trades firmly above 61.4. Targets are 62.1 and 62.6.