FULL SHOW 4/21/2021: Is a correction coming?

All three main indexes are within the pink, with the Dow (INDU) down 0.9% — greater than 300 factors decrease. The S&P 500 (SPX) fell 0.8% and the Nasdaq Composite (COMP) tumbled 0.7%.
It’s not shocking that Wall Street doesn’t like higher taxes, notably relating to capital positive aspects — the levy buyers pay on realized earnings after promoting a inventory, for instance.

These charges look very totally different in the meanwhile, with a prime federal capital positive aspects tax of solely 20%. Individuals incomes $200,000 a yr and married {couples} making $250,000 a yr additionally pay an extra 3.8% tax on their capital positive aspects to assist fund the Affordable Care Act.

Wall Street will not be impressed and the shock from these numbers is tough for buyers to shake off, mentioned Edward Moya, senior market analyst at Oanda, in a word to purchasers.

“The biggest risks to the stock market are the Fed’s taper tantrum and aggressive tax hikes,” he mentioned.

That mentioned, that is solely a proposal and the ultimate product would possibly look very totally different. White House press secretary Jen Psaki mentioned on Thursday that particulars of the American Families Plan might be outlined subsequent week throughout President Joe Biden’s handle to Congress, however she wouldn’t affirm tax enhance particulars within the plan.

Stocks stay close to document highs, so these market wobbles could possibly be an excellent excuse for buyers to promote shares and financial institution some earnings, Moya added.

–Tami Luhby and Katie Lobosco contributed to this report.