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Biden's stock market tax plans affect the Dow and Nasdaq economies

Biden’s stock market tax plans affect the Dow and Nasdaq economies

New York (dpa) – New York stock exchanges adjusted their earnings the day before again. It is believed that the reason for the indicators slipping into the red, especially in the second half of the day, is the tax plans by US President Joe Biden.

According to one report, Biden wants to tax capital income in the future. Ultimately, the Dow Jones Industrial Average fell 0.94 percent to 33,815.90 points. This falls short of the previous record of 34,256 which is already a week. The market-wide Standard & Poor’s 500 Index dropped 0.92 percent to 4,134.98 points on Thursday. The tech-heavy Nasdaq 100 lost 1.24 percent to 13,762.36 meters.

As reported by Bloomberg News, citing the circles, Biden is willing to propose a capital gains tax of more than 40 percent for wealthy Americans. That, it was said, would nearly double the tax. Experts said this sparked market speculation that some investors will continue to pay their positions before filing to take advantage of the lower tax rate.

According to market strategist Stephen Innes of Axi broker, professional traders such as hedge funds will be particularly affected. “One of the points of concern is that these contribute significantly to liquidity in the stock market,” the expert said. He emphasized that the market generally expected higher taxes. But it was not clear when this would happen. Investors now assume it will be introduced sooner rather than later.

Biden also created a topic for conversation with a new goal of climate protection. In an online meeting with 40 heads of state and government, the US president called for swift action. He has himself declared that he wants to cut US greenhouse gas emissions by at least half compared to 2005 by the end of the decade. In the case of stocks from the alternative energies sector, this sparked the imagination of investors; Shares of First Solar, for example, rose 4.2 percent.

Among the individual values, the quarterly reports submitted on Thursday were mostly positive. Telecom giant AT&T and Danaher Group posted big price gains of 4.2 and 3.5 percent, respectively. In both cases, the results exceeded the average analyst’s expectations.

But shares of the US Dow Chemical Company lost 6 percent after the numbers were presented. Experts suspect that investors are now turning a profit after a bunch of numbers were already deemed convincing. The price has nearly tripled in a year since Corona dropped in March 2020.

Biogen’s price is down four percent, although the published numbers are higher than analysts’ consensus. RBC expert Brian Abrahams wrote that the pharmaceutical company’s sales in several key sectors continued to feel competitive headwinds. He warned of other risks in the company’s core business.

SAP’s market research subsidiary Qualtrics, which went public in the US at the end of January, caused an uproar. The paper recovered approximately 23 percent from a decline that began shortly after the initial insertion. They responded to several promotions by analysts and the quarterly numbers presented the night before the market closed. Particularly praised was the optimistic outlook for the current quarter.

Shares in Nikola, a Tesla industry colleague who specializes in commercial vehicles, also showed a strong rebound. After the fluctuations in the middle of last year, things became quieter for newspapers, with stocks recently trading at less than ten US dollars at the level before being focused on. According to RBC expert Joseph Plumber, the company has now announced a new collaboration in building hydrogen filling stations. Shares rebounded 14.4 percent.

The euro fell. However, the single currency managed to stabilize at the $ 1.20 mark, and $ 1.2015 was paid recently. The European Central Bank (ECB) set the reference rate at 1.2046 (Wed: 1.2007) dollars. The price of one dollar is 0.8301 (0.8328) euros.

US bond prices have been fairly stable. Ten-year Treasury futures (T-Note Future) rose just under 0.05 percent to 132.62 points. The yield on this bond fell to 1.54 percent.

© dpa-infocom, dpa: 210422-99-316874 / 3