The Dow Jones, the Nasdaq, and most of the major groups in the S&P 500, led by stocks in commodities, consumer, and technology, registered declines after a plan by the United States president to almost double the tribute was known.
US stocks fell 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 reported Biden's plan to double the rate of this tax nearly. Most of the large groups in the S&P 500 fell, led by commodities, consumer, and technology stocks. Traders also examined 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. According to data compiled by Bloomberg dating, the percentage of Russell 2000 members trading above their 50-day moving average fell below 40%, compared to 80% of the large-cap S&P 500, slightly less than a record gap back to 1995. It is too early to tell if this
can turn into something bigger.
Nevertheless, past events have put pressure on US stocks; thus, Sundial Capital Research founder Jason Goepfert penned in a note to US stocks.
Separately, the euro fell after the European Central Bank president, Christine Lagarde, said that the institution is not discussing withdrawing its purchases of emergency bonds, even as it sees signs that the economy is starting to shake off. the coronavirus pandemic.
Wall Street opened in red this Thursday. Its leading indicator, the Dow Jones Industrials, fell 1.11% despite the latest data from the US labor market, suggesting that unemployment continues to fall.
Shortly after the close of operations on the New York Stock Exchange, the Dow Jones was down 1.11%, while the selective S&P 500 fell 1.05%. The composite index of the Nasdaq market, in which the large technology companies are listed, fell 1.14%.
All corporate sectors operated at a loss, led by essential materials companies (-0.99%), energy companies (-0.96%) and financials (-0.57%), and industrial companies were close to the flat line.
The New York stock market was looking for direction this morning after news that claims for unemployment benefits in the US continued to decline last week, to 547,000, and are at their lowest level since mid-March last year.
The market also remains concerned about the evolution of the pandemic, with an increase in COVID-19 cases globally led by India, which threatens to delay the expected economic recovery, despite the progress of vaccination campaigns.
Wall Street is going through a rough week also marked by the quarterly results, which generally adjust or exceed analysts' expectations. However, any disappointment generates a punishment, as happened yesterday to Netflix, which lost 7%.
Netflix today rebounded a slight 0.33%, and investors turned their attention to the data released this morning, among others, by the communications group AT&T (3.7%) and Dow Inc (-3.64%).
Texas oil rose to $ 61.54 a barrel in other markets, the yield on the 10-year Treasury bond fell to 1.552%, gold fell to $ 1,783.80 an ounce, and the dollar advanced against the euro, with a change of 1.2028.