Shares tumbled on Wall Street after Joe Biden’s plan to double capital gains tax was revealed

US stocks fell on Thursday after President Joe Biden’s intentions to raise capital gains tax to 43.4% were revealed. The dollar, on the other hand, rose.

The S&P 500 fell after Bloomberg News report Biden’s plan to almost double the rate of this tax. Most of the major groups in the S&P 500 fell, led by commodities, consumer goods and technology stocks. Traders also looked at earnings and mixed economic data showing the uneven rebound in economic activity.

An indicator of the size of the market suggests that investors remain concerned. The percentage of Russell 2000 members trading above their 50-day moving average fell below 40%, down from 80% of the large-cap S&P 500, slightly less than a record spread, according to data compiled by Bloomberg dating from 1995. It is too early to say if this can become anything more important, but past cases have put additional pressure on US stocks, wrote Sundial Capital Research founder Jason Goepfert in a note to clients.

In contrast, the euro fell after European Central Bank President Christine Lagarde said the institution was not discussing withdrawing its emergency bond purchases., even when you see signs that the economy is starting to shed the coronavirus pandemic.

Wall Street opened this Thursday in red and its leading indicator, the Dow Jones Industrials, fell 1.11% despite the latest US labor market data suggesting unemployment continues to decline.

Shortly after the New York Stock Exchange closed, the Dow Jones was down 1.11%; while the selective S&P 500 fell 1.05%. The Nasdaq Composite Market Index, in which large tech companies are listed, fell 1.14%.

All business sectors were operating at a loss, led by basic materials companies (-0.99%), energy companies (-0.96%) and financial companies (-0.57%), and industrial companies were close to the line flat.

The New York stock market was looking for direction this morning after news that U.S. jobless claims continued to drop last week, to 547,000, and are at their lowest level since mid- March of last year.

The market also remains concerned about the evolution of the pandemic, with an increase in COVID-19 cases globally led by India, threatening to delay the expected economic recovery, despite the progress of vaccination campaigns.

Wall Street crosses a irregular week also marked by quarterly results, which generally adjust or exceed analysts’ expectations, even if any disappointment generates a penalty, as happened yesterday for Netflix, which lost 7%.

Netflix today recovered a slight 0.33% and investors turned to data released this morning, among others, by communications group AT&T (3.7%) and Dow Inc (-3.64%) .

In other markets, Texan oil rose to $ 61.54 per barrel, the yield on the 10-year Treasury bill fell to 1.552%, gold fell to $ 1,783.80 per ounce and the dollar fell to $ 1,783.80 per ounce. rose against the euro, with a variation of 1.2028.

With information from Bloomberg and EFE

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