Stocks Drop on Biden Plan to Lift Capital-Gain Tax: Markets Wrap
- Federal tax rates for rich investors could be as high as 43.4%
- Intel reports slump in data-center sales; gross margin falls
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U.S. stocks had their biggest slide in five weeks after President Joe Biden was said to propose almost doubling the capital-gain tax for the wealthy. The dollar advanced.
The S&P 500 turned lower after Bloomberg News reported that for those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for rich investors could be as high as 43.4%. Speculation arose that some traders may sell shares before any change is made to capture the lower rate.