US stocks dip after tax bill passed as another valuation measure hits Internet bubble level

The US stock market fell on Wednesday despite passage of the tax-cut bill by Congress. The S&P 500 slipped 0.1 percent.

Craig Erlam, senior market analyst at Oanda, said that it is likely that the tax legislation is “almost entirely priced in at this point”.

Diane Jaffee, senior portfolio manager at TCW, expects “the market to pause in January” but “ultimately continue to climb thanks to revenue and earnings growth”.

Indeed, Jonathan Golub, Credit Suisse's chief US equity strategist, told CNBC that stocks could see another year of double-digit gains as “the economic upsides from these tax changes start to hit in late 2018”.

Still, the US stock market is already expensive. According to Bloomberg, the S&P 500 is now trading at 2.3 times sales, a level it had not touched since the days of the Internet bubble.