Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. stocks close lower on worries over recovery, corporate tax hikes

Stock MarketsSep 14, 2021 06:46PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: American flags hang from the facade of the New York Stock Exchange (NYSE) building after the start of Thursday's trading session in Manhattan in New York City, New York, U.S., January 28, 2021. REUTERS/Mike Segar/File Photo

By Stephen Culp

NEW YORK (Reuters) - Wall Street lost ground on Tuesday as economic uncertainties and the increasing likelihood of a corporate tax rate hike dampened investor sentiment and prompted a broad sell-off despite signs of easing inflation.

Optimism faded throughout the session, reversing an initial rally following the Labor Department's consumer price index report. All three major U.S. stock indexes ended in negative territory in a reminder that September is a historically rough month for stocks.

So far this month the S&P 500 is down nearly 1.8% even as the benchmark index has gained over 18% since the beginning of the year.

"There is a possibility that the market is simply ready to go through an overdue correction," said Sam Stovall, chief investment strategist at CFRA Research in New York. "From a seasonality perspective, September tends to be the window dressing period for fund managers."

The advent of the highly contagious Delta COVID variant has driven an increase in bearish sentiment regarding the recovery from the global health crisis, and many now expect a substantial correction in stock markets by the end of the year.

"We're still in a corrective mode that people have been calling for months," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "Economic data points have been missing estimates, and that has coincided with the rise in the Delta variant."

The CPI report delivered a lower-than-consensus August reading, a deceleration that supports Federal Reserve Chairman Jerome Powell's assertion that spiking inflation is transitory and calms market fears that the central bank will begin tightening monetary policy sooner than expected.

U.S. Treasury yields dropped on the data, which pressured financial stocks, and investor favor pivoted back to growth at the expense of value. [US/]

The long expected corporate tax hikes, to 26.5% from 21% if Democrats prevail, are coming nearer to fruition with U.S. President Joe Biden's $3.5 trillion budget package inching closer to passage.

The Dow Jones Industrial Average fell 292.06 points, or 0.84%, to 34,577.57; the S&P 500 lost 25.68 points, or 0.57%, at 4,443.05; and the Nasdaq Composite dropped 67.82 points, or 0.45%, to 15,037.76.

All 11 major sectors in the S&P 500 ended the session red, with energy and financials suffering the largest percentage drops.

Apple Inc (NASDAQ:AAPL) unveiled its iPhone 13 and added new features to its iPad and Apple Watch gadgets in its biggest product launch event of the year as the company faces increased scrutiny in the courts over its business practices. Its shares closed down 1.0% and were the heaviest drag on the S&P 500 and the Nasdaq.

Intuit Inc (NASDAQ:INTU) gained 1.9% following the TurboTax maker's announcement that it would acquire digital marketing company Mailchimp for $12 billion.

CureVac slid 8.0% after the German biotechnology company canceled manufacturing deals for its experimental COVID-19 vaccine.

Declining issues outnumbered advancing ones on the NYSE by a 2.25-to-1 ratio; on Nasdaq, a 2.40-to-1 ratio favored decliners.

The S&P 500 posted two new 52-week highs and two new lows; the Nasdaq Composite recorded 50 new highs and 107 new lows.

Volume on U.S. exchanges was 10.07 billion shares, compared with the 9.38 billion average over the last 20 trading days.

U.S. stocks close lower on worries over recovery, corporate tax hikes
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (34)
Az Jak
Az Jak Sep 15, 2021 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Talib Hussain Bajkani
Talib Hussain Bajkani Sep 15, 2021 6:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hello
Darshana Trivedi
Darshana Trivedi Sep 14, 2021 9:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I believe that this tax hike will give fed a room for continuing bond purchases
Talib Hussain Bajkani
Talib Hussain Bajkani Sep 14, 2021 9:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hello
Pratt Man
Pratt Man Sep 14, 2021 8:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
42% decline by Christmas.
Matt Novakovich
Matt Novakovich Sep 14, 2021 8:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
50%
Ivan Ivan
Ivan Ivan Sep 14, 2021 8:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
100%
Robert DZ the patterns
Robert DZ the patterns Sep 14, 2021 6:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it doesn't affect me at all, I day trade, I pull profits no matter what happens. LOL
Show previous replies (1)
Joyce Yun
Joyce Yun Sep 14, 2021 6:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No one is interest to know if it affects you . Please be sensitive with your remarks as there may be tons of people in a negative position. Very good luck to your day trading.
Matt Novakovich
Matt Novakovich Sep 14, 2021 6:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Joyce Yun don't worry your husband will keep paying for you
Robert DZ the patterns
Robert DZ the patterns Sep 14, 2021 6:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you don't know much Fernando, some day you will learn
Benjamin Thomas
Benjamin Thomas Sep 14, 2021 6:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
Josh Davis
Josh Davis Sep 14, 2021 6:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Robert DZ the patterns 90% of daytraders are not profitable over their careers….
FUTURES MOONING
FUTURES MOONING Sep 14, 2021 6:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
*Stocks close down 0.1% from ATH* The Media: eCoNoMiC rEcOvErY woRRiEs
milena villa escobar
milena villa escobar Sep 14, 2021 5:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What do you know the first time Reuters didn't blame a sell-off on Coronavirus. Lol
Sarunas Simkus
Sarunas Simkus Sep 14, 2021 5:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Funny, cause slowdown is causes by delta variant of corona virus!
Josh Davis
Josh Davis Sep 14, 2021 5:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pratt Man
Pratt Man Sep 14, 2021 5:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
any net income by corporations after paying employees and shareholders, should be taxed at 75%... because a corporation is just a number.. it doesn't actually do anything.
Show previous replies (2)
Sarunas Simkus
Sarunas Simkus Sep 14, 2021 5:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am sorry, but you need to gake Business 101 course...
Olga Haldemann
Olga Haldemann Sep 14, 2021 5:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not so sure. In eu, to pay less taxes companies distribute higher dividents in such years of tax hikes, be ause each shareholder is taxed on his income from stocks he is holding. In US you receive dividents free of tax? Or these dividents are taxed twice: once as a corporate profit and once as individual income? :)
Olga Haldemann
Olga Haldemann Sep 14, 2021 5:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They do. They create work places. A CEO is an employee too. In your strategy, everyone who is a natural leader, would rather be an employee then crate corpotations:)
TR LH
TR LH Sep 14, 2021 5:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Olga Haldemann  Corporations create jobs, if the corporation is not profitable the jobs will go away. They spend on expansion, R&D, pay dividend's, borrow in the form of bonds then pay interest to the holders of those bonds. It's a little more complicated.....
Benjamin Thomas
Benjamin Thomas Sep 14, 2021 5:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
john dislias
john dislias Sep 14, 2021 4:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are finding something new reason Everyday to pursuite the traders that the decline will come but it will not come ridiculous journalyst and short sellers .
Stan Smith
Stan Smith Sep 14, 2021 4:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Dems are proposing corporate tax hikes that are greater than those in Communist China...
Pratt Man
Pratt Man Sep 14, 2021 4:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
us corporations tax rate is in the lowest 1/3 of the industrialized nations.. told increase would put us in the middle.
Gee Oxie
Gee Oxie Sep 14, 2021 4:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pratt Man did you factor in that orher countries has tariffs against us companies?
TR LH
TR LH Sep 14, 2021 4:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pratt Man  Increasing taxes will stiffle the economy, cost jobs, result in lower tax income and corporations moving back off shore to tax havens. Biden and the left know this and that is their agenda. Build back better for them. All the things that created the greatest economy known to man will be dismantled by the looney left. 2022 cannot get here fast enough, then we can finish them off in 2024.
William Bailey
William Bailey Sep 14, 2021 4:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Crash imminent!!! Great news
Fakhri Sattarov
Fakhri Sattarov Sep 14, 2021 3:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tax rate hikes should be already priced in the stock markets before. Just a stupid explanation of price falls when there are no any other smart arguments!
Emmanueldickson Mapulanga
Emmanueldickson Mapulanga Sep 14, 2021 3:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the only truth is that there is an imbalance in conviction on the sell side. Anything can happen.
Prakash J Chaudhari
Prakash J Chaudhari Sep 14, 2021 3:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market manipulation by highlighting selective news
IceIce Baby
IceIceBaby Sep 14, 2021 3:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As usual.
Fernando Lazarini
Fernando Lazarini Sep 14, 2021 3:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So, the tax hikes were not known by the market in the morning? What´s the next explanation for a realisation of gains? Covid worries maybe? Tapering?
TR LH
TR LH Sep 14, 2021 3:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A new natural gas tax just hit the floor the night before.
Mario tragik
Mario tragik Sep 14, 2021 3:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
taxes going up ... lmao yeah I would like to see that one pass. another shakeout to miraculously rally next days or weeks to a new ATH.
Balachandran RV
Balachandran RV Sep 14, 2021 12:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Its a good time to take off the profits if the taxes are going to go up ! After all the markets are severely inflated
Alan Rice
Alan Rice Sep 14, 2021 12:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The major securities markets are now poised for a major breakout to the upside. Cash position should be < 15%. Caveat: Never invest more than you can afford to lose.
Jacob Steinschlag
Jacob Steinschlag Sep 14, 2021 12:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cash position should be ~50% at this time. We're posed for a major correction.
Critical Riff
Critical Riff Sep 14, 2021 12:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
because the past year has been a consolidation period right ...
Mitchel Pioneer
Mitchel Pioneer Sep 14, 2021 12:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yesterday's DOW "rally" walked a tightrope, and yet today we have more losses magically vanishing from the system.  Unimpeded upside, with criminal intervention on the downside.  How can you lose in the biggest investment JOKE in the world?
Darryl Allen
Darryl Allen Sep 14, 2021 12:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
by repeatedly shorting like you lol
xolani alex
xolani alex Sep 14, 2021 11:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As the Fed is set to commence the tamper tantrum, a correction is needed to reflect intrinsic value before any growth can take place.
Bay Creek History Detectives
Bay Creek History Detectives Sep 14, 2021 11:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nice narrative.  I knew tax increases might matter at some point. Now the debt ceiling. Running out of time. Politicians still on vacation.
Mitchel Pioneer
Mitchel Pioneer Sep 14, 2021 11:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
With clockwork precision, the US Ponzi Scheme, biggest investment JOKE in the world, "rallies" at 11AM.  Remarkable how you don't see "gains" relinquished at 11AM.  And of course, the NASDAQ is miraculously in the green.  The greatest financial fraud in history is back on course to defraud America in broad daylight.
Bill Cool
Bill Cool Sep 14, 2021 11:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So now they’re taking their profits before their taxes go up. These guys are pure genius.
Alberto Bassetto
Alberto Bassetto Sep 14, 2021 11:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i find each day this market explanatory notes (afterwards of course) insulting to some basic intelligence not to mention misleading. Many would disagree but is clear to me each day the knucklehead on duty pulls from the pre-boiled tool box a couple of tools (reasons) to say... hey.... this is what caused mkt to move. the fact is ..... over time the same tools are not used consistently and reveal these mkt commentary are not even to ..... letz stop here
Jimmy Joseph
Jimmy Joseph Sep 14, 2021 11:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
every day, new narratives, that doesn't make any sense. we did know about the tax stuff yesterday, right
Ricardo Diogo
Rcd72 Sep 14, 2021 10:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
fake inflation data ...
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email