STOCK MARKET OUTLOOK: DOW JONES, NASDAQ, S&P 500 UNDER PRESSURE ON THREAT OF HIGHER TAXES
- The Dow, Nasdaq, and S&P 500 are sliding fast during afternoon trade due to tax fears
- President Biden is reportedly set to propose a capital gains tax hike from 20% to 43.3%
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Major stock indices like the Dow Jones, Nasdaq 100, and S&P 500 are turning broadly lower. Stocks seem to be getting hit in response to news that President Joe Biden will suggest hiking the US capital gains tax to 43.3% for wealthy individuals.
| Change in | Longs | Shorts | OI |
| Daily | -12% | 9% | 0% |
| Weekly | -13% | 8% | 0% |
DOW, NASDAQ, S&P 500 INDEX PRICE CHART: 5-MINUTE TIME FRAME (22 APRIL 2021 INTRADAY)
This would be sharply higher than the current 20% tax on capital gains. The negative reaction by equity investors comes as little surprise seeing that higher taxes curbs speculative spirits and reduces potential expected returns.
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-- Written by Rich Dvorak, Analyst for DailyFX.com
Connect with @RichDvorakFX on Twitter for real-time market insight
