Stocks erased earlier gains to trade sharply lower after Bloomberg reported Thursday afternoon that President Joe Biden would propose increasing the corporate tax rate on wealthy individuals.
The Dow dropped more than 250 points, or 0.7%, immediately following the report, after trading just slightly lower earlier.
Stocks have churned in recent sessions as investors digested a bevy of corporate earnings results and awaited additional reports, more economic data and more commentary from Federal Reserve officials in the coming weeks.
Chipotle shares edged higher in early trading after the restaurant company posted first-quarter earnings that blew away expectations late Wednesday, with digital sales more than doubling.
With stocks hovering near all-time highs and the early stages of the post-pandemic recovery already under way, any additional moves higher will likely come with some difficulty, some analysts said.
"We have an infrastructure spending plan that's also coming out ... And once we have that, we've already spent $5.8 trillion, we're going to spend some more, we're going to have a very large deficit, so then what comes next? The next 12 months of fiscal spending is probably going to be less than the last 12 months," Caron added.
"I do think that returns for equities are certainly going to be more subdued. I mean, we did have a very strong recovery from the bottom that we've seen. But now we are bumping up against price targets. We're probably about 5% away from our year-end price target," Anastasia Amoroso, JPMorgan Private Bank head of cross asset thematic strategist, told Yahoo Finance.
https://finance.yahoo.com/news/stock-market-news-live-updates-april-22-2021-221304988.html
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