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Dow Falls as Biden Reportedly Mulls Tax Hike on Rich

Published 04/22/2021, 01:34 PM
Updated 04/22/2021, 03:22 PM

By Yasin Ebrahim

Investing.com – The Dow fell Thursday as investors weighed up the latest round of corporate earnings and reports that President Biden is considering a major capital gains tax hike on the rich.

The Dow Jones Industrial Average fell 1%, or 342 points, the S&P 500 slipped 1%, and the Nasdaq Composite was down 1%.

Biden is reportedly contemplating almost doubling the capital gains tax hike up to 39.6% to fund child care and education proposals included in his so-called American Family Plan.

The news rattled investor sentiment and dragged stocks further into the red, overshadowing another wave corporate earnings.

Southwest Airlines (NYSE:LUV) fell 1% after it estimated that it could achieve break-even by June, underpinned by strong leisure travel bookings into the summer months. The upbeat guidance offset mixed quarterly results as revenue fell short of estimates.

Las Vegas Sands (NYSE:LVS) slipped 3% as Wall Street sounded a cautious note on the company following its first-quarter results that missed on the bottom line.

Equifax (NYSE:EFX) reported first-quarter results that topped Wall Street estimates, sending its share price more than 15% higher.

The wave of mostly bullish corporate earnings come in the wake of a surge in cases globally that has cooled expectations over a faster reopening. India reported a record one-day surge in cases on Thursday.

In the U.S., however, Covid-19 cases continue to trend lower, with President Joe Biden confirming the country has achieved its 200 million vaccines milestone.

Improving economic data, particularly in the labor market, continues to reflect the success of the vaccine rollout that has led to a further reopening of the economy.

In the week ended April 17, 547,000 people filed for unemployment insurance, down 39,000 from the prior week's upwardly revised 586,000 and confounding economists' estimates for 610,000.

Energy stocks were sluggish despite oil prices recovering some losses as hopes for a recovery in demand remain fragile amid rising global infections.

Big tech, traded mix ahead of key earnings for the sector, with Intel (NASDAQ:INTC) due to report quarterly results after the closing bell.

Google-parent Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB), Amazon.com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) were in the red.

In other news, Citigroup (NYSE:C)'s sale of its retail businesses could reportedly bring in as much as $6 billion.

Latest comments

The idea that capital gains should be treated like income is insane. The truth is that capital gains comes with significant risks and potential losses for an investor. The risk reward ratio becomes extremely skewed in the long run if the gov takes 40% of profit.Investors with hundreds of millions will simply start investing more in dividend stocks and pay the lower rate on those.
What a joke LOLLL.  The rich always supports Biden. And they can enjoy higher ridiculous tax now.
AAPL was in the red, but my income from apple is still 💎🙌
Lol, as if anyone here earned 1M /Year
Investing in americans is never a bad thing... unless youre rich, then you just take americans tx money through criminal subsidies
Yes you right but it matter when you find the right compound to put your coins
Since trickle down didnt work they have to work on means to taoe back the american tax payer money that was funnelled into ceo and their crony pockets. Had they done the right thing then people wouldnt be ready to brn their empires down.
usa now looks like Argentina and Venezuela
Lmfao shush
Impeachment?
Sleepy joe knows this tax rate will never pass. He just announces it so he can buy puts the day before. Nice
Are you five years old?
Biden has physically and mentally decayed. His face is hollow like someone with not long to go. That pic by news outlets are old. Biden wears a huge mask to cover his sunken face
And hes still bettet than you
Steven doesnt have much of value left to share after all the tin foil cut off most of the circulation to his brain.
This is a great president, much better than businessman Trump. It certainly has to raise taxes on the rich because it has to patch holes to achieve ambitious but driving plans that will strengthen the U.S. economy and society as a whole will benefit from it in the long run.
  Sure when they re-write history and obscure the facts
tax these greedy trillionaires they change the laws to suite themselves and  give nothing  to the poor.. in twenty years the five big banks have made zillions on interest rate swops on 54 trillion trade deals that have never gone bad as the exchange stabilization fund takes care of their losses and us poor folk earn zero interest make them pay dearly Mr President they only take never give!
Trillionaires? Zillons? Millionaies and billionaires give millions jobs. Take them out of the picture or they move overseas and see how many jobs they take with them.
the rich provide the jobs you economy ********dolt. unless you're working for the government which is the goal of soxialism.. everyone who voted for this guy is either working for the government, has their hand out, or is a %&@@%%
everyone didn't vote Biden. He probably received what Hillary Clinton got, 65m give or take. Who here believes Biden got 12 million more votes than Obama at his popularity peak?
Need to increase the dividend tax on the rich as well since for most of the rich this is their big earner and should be taxed as income
who employs you? the government? You're retired? the peanut gallery doesn't know how things work. wake up.
Taxation is theft, period. Reduce the size of the federal govt. Give back the states all 10th amendment rights that have been stolen by the feds for political power. The federal gobt is the most inefficient entity in earth. Why liberals and socialists want to trust the govt is just assinine.
go live in Libya i bet u can avoid paying taxes there, just become a warlord.
As a former investment advisor, the rich do not pay these taxes. Most pay less taxes than the poorest person or none at all. This is meant to gut the upper middle class and some middle class families. It rolls downhill children, so get ready.
The middle class is not earning over a million. Nice try trumpster
trumpster? your IQ is 5. your socialist
“you’re a socialist”* i think you meant to say
NASDAQ SELL CONTINUES
Wall Street overwhelmingly donated to the DNC and Joe the Potato Biden. The Progressives of the party want to crucify the rich and are working to ensure there are no loopholes. They can reap what they've sown.
Oh ... ok thanks, we will?
Certainly, Burisma Joe is a senile fool, just to say the least. However, the market will not crash. Too much money around. Every dip is a buying opportunity.
naive, multiple market crashing policies being put in place in rapid succession... the market will crash, probably while it has its foot on the throttle
...I see all the zombies rising again from their graves...should anyone have a wooden stake to borrow me?...
I got to help tho
Taxes. Printing money is not enough. Govs are broken
they going to take the down side too
Losea Joe
bye bye stocks. bye bye what's left of the economy
Leftism Democrats are chasing the Swedish model....and they are doing well without stock market.
swedish model is a failure
even all those trading guru's are offering last chance discount subscriptions, because the parties over and their taking all they can get from you.
Biden is horrible. Vote these psycho commies out in 2022 & 24
rich people take a lot more than working people get. there needs to be a balance. working people are short about 35% of that stabilizing balance.
That is incorrect. The rich pay 50% of taxes while accounrong fkr something like 20% of income.
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