Has the $1.5 Trillion US Tax Cut Package Failed To Boost Business Spending So Far?
U.S. President Donald Trump’s tax cut package is apparently yet to produce a substantial boost in business spending, as suggested by a recent survey result.
According to the National Association of Business Economics' (NABE) quarterly business conditions poll published on Monday, 84% of respondents indicated that corporate tax cuts did not lead them to change plans. That percentage is even bigger compared to the 81% in the survey published in October.
The $1.5 trillion cut tax package – which included a reduction of corporate tax rate to 21% from 35% - is the largest U.S. tax code overhaul in more than three decades. It was expected to free up more cash for companies to increase employment and/or expand capital spending. But that may not have fully translated into reality as yet, according to the survey.
The survey's gauge of capital spending fell in January to its lowest level since July 2017. Projections on capital spending for the next three months also dropped. There was a modest improvement in employment growth in the fourth quarter of 2018, compared to the third quarter. The measure for projected employment over the next three months declined to 25 in January, from 29 in October.
However, looking at the goods producing sector in isolation, the tax cut did seem to have an impact. Half of the respondents from that sector reported increased investments at their companies, while 20% claimed to have reallocated investments and employment to the U.S. from abroad.
Momentum Indicator for SPY turns positive, indicating new upward trend
SPY saw its Momentum Indicator move above the 0 level on September 03, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 69 similar instances where the indicator turned positive. In of the 69 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for SPY just turned positive on September 10, 2025. Looking at past instances where SPY's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPY advanced for three days, in of 359 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 451 cases where SPY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SPY broke above its upper Bollinger Band on September 15, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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