Stock market today
A lower close for the US stock market upon news and a report for higher taxes for wealthy people. All major stock indexes closed lower. Dow Jones lost 321 points, S&P 500 lost 38 points and Nasdaq lost 131 points. Small-cap stocks outperformed. The closing numbers for the US stock market today are as follows.
S&P 500: 4,134.98,-38.44(-0.92%)
Dow 30: 33,815.90,-321.41(-0.94%)
Russell 2000: 2,232.61,-7.01(-0.31%)
Stock market news today
“Stocks erased earlier gains to trade sharply lower after Bloomberg reported Thursday afternoon that President Joe Biden would propose increasing the capital gains tax rate on wealthy individuals.
The Dow dropped more than 250 points, or 0.7%, immediately following the report, after trading just slightly lower earlier. The S&P 500 and Nasdaq erased gains to trade at session lows.
Biden’s plan would involve increasing the capital gains tax rate on the wealthy to 39.6%, according to the report from Bloomberg citing people familiar with the matter. This would apply to those earning at least $1 million. The current base capital gains tax rate is 20%.
Earlier, in the session, stocks were little changed and struggled for direction. Stocks have churned in recent sessions as investors digested a bevy of corporate earnings results and awaited additional reports, more economic data and more commentary from Federal Reserve officials in the coming weeks.
Corporate earnings have so far exceeded Wall Street’s even lofty expectations, as companies benefited from both a pick-up in revenue as demand recovered, and as cost-cutting measures implemented during the pandemic boosted their bottom lines. Chipotle (CMG) shares edged higher in early trading after the restaurant company posted first-quarter earnings that blew away expectations late Wednesday, with digital sales more than doubling.
With stocks hovering near all-time highs and the early stages of the post-pandemic recovery already under way, any additional moves higher will likely come with some difficulty, some analysts said.
“What we have is the absence of a catalyst. Everything that we’ve done over the last twelve months has been to build up to this point, to get this recovery, to get a very, very strong second-quarter GDP, which we think could be upwards of 10%,” Jim Caron, Morgan Stanley investment management fixed income portfolio manager, told Yahoo Finance. “But after that, things start to slow down. It doesn’t mean that the data gets bad, it just means on a relative basis that the third quarter will be weaker will the second quarter and the fourth quarter may be weaker than the third quarter.”