CM – Stocks worry about capital gains taxes


Stocks fell on news the President


is considering nearly doubling capital gains taxes for the rich.

Mr Biden plans to increase capital gains tax up to 39.6% for the richest Americans, an increase from the current 20%, Bloomberg News reported Thursday > Major indices hovered between small gains and losses for much of the session before hitting the headlines. The S&P 500 fell 38.44 points, or 0.9%, to 4134.98. The Dow Jones Industrial Average fell 321.41 points, or 0.9%, to 33,815.90. The Nasdaq Composite fell 131.81 points, or 0.9%, to 13818.41.

All 11 sectors of the S&P 500 traded lower in the report. Technology and other growth stocks have been some of the biggest losers. Shares of

Micron technology,



Western Digital

down more than 4%.

The proposed tax hike comes as no surprise, but the drop in inventories has been a jerky response, he said

Quincy Krosby,

Chief Marketing Strategist at Prudential Financial.

« While this comes as no surprise – the expectation that capital gains will be taxed at a higher rate – it becomes more immediate and there is a problem in the market, » she said. « This is not new. It wasn’t about if or when, just ‘how much?’

Elsewhere, investors continued to analyze a range of earnings reports and labor market data. Many investors remain optimistic about that Outlook for stocks, but growing concerns that a surge in coronavirus cases worldwide could delay plans to reopen economic activity. India on Thursday reported the world’s largest one-day surge in new infections.

« There wouldn’t be much news for [investors ] need to tear up their reopening playbook, « he said

Christopher Jeffery,

Head of inflation and interest rate strategy at Legal & General Investment Management. « The market has moved from a world where it has not been questioned to a world where it has not been questioned, » he said, adding that his team is precisely tracking the surge in cases in Michigan tracked.

shares of


rose $ 28.78, or 15%, to $ 221.41 after the credit bureau raised its financial guidance for the year late Wednesday and announced it would buy back more than $ 100 million in shares.

Blackstone Group

Shares rose $ 2.65, or 3.3%, to $ 82.96 after the private equity firm posted record earnings of $ 1.75 billion in the first quarter.

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were among the companies to report post-market earnings results.

Snap reported a jump in sales and a smaller quarterly loss as the social media platform gained more users and stocks rose nearly 5% after hours.

Conversely, Intel reported lower quarterly revenue and revenue. The tech company’s stock fell 2% in after-hours trading despite a raised outlook for the year.

Some investors are concerned about the results expected later this year. « We just have to see what happens when you take away the incentive and cash payments, » he said

Kimberly Woody,

a Senior Portfolio Manager at Globalt Investments. “We’re at a sugar high.” Economically, employee claims for unemployment hit another Covid-19 low of 547,000 last week. The decline is a sign that the labor market is strengthening.

Jason Borbora-Sheen,

The multi-asset portfolio manager at Ninety One expects the broad equity market to move sideways or decline over the next few months. « Things are pretty overbought, » he said.

One of the two funds that Mr Borbora-Sheen manages has bought put options to protect itself from downward movements in stocks. Puts are contracts that pay off when the underlying asset falls below a certain price.

In the bond market, the yield on 10-year US Treasuries fell from 1.566% on Wednesday to 1.554%. Yields, moving in the opposite direction to bond prices, have fallen from a high of 1.749% in late March.

Stocks of

Credit Suisse Group

fell 2.1% after the Swiss lender announced it would issue new shares after losses at Archegos Capital Management wiped out a strong first quarter.


Stocks fell 1.3% after the French automaker said sales fell in the first quarter.

The European Central Bank left its policy rates and bond purchase programs unchanged, trying to put governments and businesses through a new round of coronavirus infections and – Restrictions continue to support.

In Asia, chemical and pharmaceutical stocks helped Japan’s Nikkei 225 gain 2.4%. China’s Shanghai Composite Index was down 0.2%.

Published in the print edition of April 23, 2021 as « Gains-Tax Talk Hits Stocks ».


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