Stocks tumbled on Wall Street after Joe Biden's plan to double the capital gains tax was revealed.

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source: finance.yahoo.com

The Dow Jones, the Nasdaq, and most of the large groups of the S&P 500, led by stocks of raw materials, consumption, and technology, registered declines on the day after the project of the president of the United States of almost doubling the tribute.

The major indices on Wall Street closed lower on Thursday after President Joe Biden's intentions to raise the capital gains tax to 43.4% were revealed. The dollar, on the other hand, rose.

The main indicator of the New York market, the Dow Jones Industrials, fell 0.94% (stabilized at 33815.90 points) even though the latest data from the labor market in the United States suggest that unemployment continues to fall. The selective S&P 500 fell 0.92% to 4134.98 points. Simultaneously, the composite index of the Nasdaq market, in which large technology companies are listed, closed 0.94% red at 13,818.41 points. The falls are minor but indicate a temporary break on the strong uptrend of recent weeks.

The S&P 500 began falling after Bloomberg News reported Biden's plan to nearly double the rate of this tax. Most of the large S&P 500 fell, led by commodities, consumer, and technology stocks. Traders also reviewed income and macroeconomic data, which led to unevenness in economic activity.

An indicator of market size indicates that investors are 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 lower than the 1995 record. It's too early to tell if it could turn into something bigger. Still, past events have put pressure on US stocks; as a result, founder Jason Goepfert Sundial Capital Research wrote in a note to US equity users.

Separately, after the euro's European Central Bank president, Christine Lagarde, said after the fall that the institution was not talking about withdrawing its emergency bond purchases, it even gave the signal. The economy has begun to eradicate the coronavirus epidemic.

All corporate sectors operated at a loss, led by basic 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 Exchange was looking for direction this morning after news that unemployment benefits in the United States fell to 547,000 last week and are at their lowest level since mid-March last year.

The market is also concerned about the evolution of the epidemic, with global India-led COVID-19 cases on the rise, threatening to delay the expected economic recovery despite progress in vaccination campaigns.

Wall Street is also going through a tumultuous week marked by a quarterly result, which usually adjusts or exceeds 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 moved against the euro with a change of 1.2028.