Stocks fell hard Thursday after a report that the Biden administration would seek to nearly double the capital gains tax for millionaires. That followed a stronger-than-expected jobless claims report.
In afternoon trading, the
Dow Jones Industrial Average
was down 212.35 points points, or 0.6%. The
had fallen 0.4%, while the
had declined 0.4%.
The New York Times reported that the Biden administration would increase the rate for the richest Americans to 39.6%, from 37%, percent, while raising the capital gains tax on people earning more than $1 million to 39.6%, from 20%. Higher capital gains taxes could force wealthy individuals to sell their best-performing stocks to front-run the tax increases.
In other news, a group of Republican lawmakers released a $568 billion infrastructure spending proposal, far less than half of the $2.3 trillion President
proposed, and likely less than the market was looking for.
Initial jobless claims for the past week came in at 547,000, beating estimates of 603,000 and improving over last week’s result of 576,000. The result Thursday was a pandemic low, as reopening and fiscal stimulus helps fuel a recovery in the job market.
In Asia, the
stormed 2.4% higher after two days of losses. E-commerce group
surged 7% while medical equipment maker Olympus Corp. and Nippon Steel were among a broad-based group of Japanese companies to rise.
Other international markets advanced, with the
rising 0.5% in Hong Kong and the
Stoxx Europe 600
adding 0.7%. The
edged 0.2% lower.
The European Central Bank kept its key interest rate and asset buying program unchanged.
shares slumped in Zurich, as the bank said it is raising $1.9 billion to rebuild its balance sheet and said it would have to take another charge, in the second quarter, over the collapse of Archegos Capital Management.
(ticker: TDC) shares soared 24.3% after the company pre-announced better-than-expected results for its quarter ended in March. The company is now guiding for earnings of 46 cents a share at the midpoint of its range, higher than its previous outlook for 12 cents.
(EFX) shares rose 15.6% after the company reported a profit of $1.64 a share, beating estimates of $1.34 a share, on revenue of $1.2 billion, ahead of expectations for $1.1 billion.
(FSR) shares fell 9.9% after Goldman Sachs downgraded the stock to Sell from Neutral.
(F) shares rose 1.6% after Wolfe Research upgraded the stock to Outperform from Peer Perform.
(FSLR) rose 3.4% after Barclays upgraded the stock to Equal Weight from Under Weight.
Write to Jacob Sonenshine at [email protected]