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Why is JEPQ Up Today After Tax Policy Talks

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) closed up 0.4% at $57.36 on February 5, as the Nasdaq 100 Index rose by 0.42% to 21,658.16 amid ongoing fiscal policy discussions. The market's positive movement is influenced by the potential extension of tax cuts from the first Trump administration, which could boost corporate earnings and support higher valuations. However, the Congressional Budget Office warns that extending these cuts without reducing spending could increase government debt issuance, potentially leading to higher yields on Treasury securities. This fiscal uncertainty is contributing to the current undervaluation of Treasuries relative to fundamental drivers like rates and inflation expectations.