The Russell 2000 index of small U.S. companies edged higher on Thursday, bucking the overall downward bias of the day’s stock market trading after House Republicans unveiled the Tax Cuts and Jobs Act. The index rose 0.1%. The Dow Jones Industrial Average was down 0.1% while the S&P 500 lost 0.3% and the Nasdaq Composite Index sank 0.4%. The proposed legislation would cut corporate taxes and repeal taxes paid by large estates. Though the bill is seen as having a long journey into becoming law, investors took the unveiling as a positive sign, providing a lift to small companies. The Russell has had a strong correlation to the tax plan as its components, which tend to be more U.S. centric, are expected to see a greater impact from any changes to tax laws.
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