U.S. Stocks, Dollar Fall as Tax Debate Heats Up: Markets Wrap

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U.S. equities slumped, with small caps leading losses, and the dollar erased a gain as concern mounted that the Republican tax overhaul package may struggle to pass the Senate.

All major U.S. equity gauges were lower. The S&P 500 Index dropped in afternoon trading after Republican Senator Marco Rubio’s spokeswoman said he told Senate leaders he’ll oppose tax legislation unless they agree to a larger child tax credit. Republicans can only afford to lose two votes and still guarantee passage.