Skip to content
Subscriber Only
John Authers

Stocks Will Get Over Their Big Biden Tax Wobble

History shows that the effects of changes in capital-gains rates don’t tend to endure.

It’s going to be this big.

It’s going to be this big.

Photographer: BRENDAN SMIALOWSKI/AFP/Getty Images

To get John Authers' newsletter delivered directly to your inbox, sign up here.

Stock markets don’t like it when politicians say they are going to raise capital-gains taxes. This should come as no surprise to anyone, and so Wall Street’s response to Thursday’s Bloomberg News exclusive that President Biden is planning a big hike in CGT was predictable. No prizes for working out exactly when that story was published after looking at this intraday chart of the S&P 500: