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Around 19 Norwegian time Bloomberg News published a case that President Joe Biden is investigating doubling the capital tax for the rich, from 20 percent to 39.6 percent.
The news hit Wall Street, where the mood fell like a rock. Until then, the leading stock exchange indices were barely in the red, but they immediately fell by just over one per cent. All sub-indices fell, and most technology and growth stocks fell.
Automatic reaction
The tax increase should come as no surprise to anyone, and Biden has always warned that the richest must contribute more over the tax bill. Especially after his predecessor Donald Trump gave big tax breaks, especially to the rich.
– Although this is no surprise – that the capital tax will go up – it is now getting closer and the market is reacting, says Quincy Krosby, head of marketing strategy at Prudential Financial til The Wall Street Journal.
He describes the stock market fall almost as an automatic reflex among investors.
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The immediate shock among investors lasted the day, until the stock exchanges closed at 22 Norwegian time.
This is how the leading US stock market indices ended:
- The industry-heavy Dow Jones index is down 0.94 percent.
- The Nasdaq technology index opens down 0.94 percent.
- The broad S&P 500 index down 0.92 percent.
The European stock exchanges had a good day on Thursday. All the leading stock exchanges ended up, including the Oslo Stock Exchange.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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