Dow falls 400 points as Biden hikes capital gains tax for wealthy

Stocks fell sharply on Thursday after news that Biden is hoping to double Capital Gains Tax to 39.6%. The Dow fell 1.1% or 368 points as investors weighed up the latest round of corporate earnings and reports that President Biden is considering a major capital gains tax hike on the rich.

The news sounding an alarm for investors over the potential toll on trading profits, DOW slipped 0.90%, and was down 0.91%, dragging stocks further into the red, overshadowing another wave of corporate earnings.

Southwest Airlines rose nearly 1% though the upbeat guidance offset mixed quarterly results as revenue fell short of estimates.

The wave of mostly bullish corporate earnings comes in the wake of a surge in cases globally, cooling expectations over the fast reopening. In the U.S., however, Covid-19 cases continue to trend lower, with President Joe Biden confirming the country has achieved its 200 million vaccines milestone.

Equifax reported first-quarter results topping Wall Street estimates. Their share price saw a 17% rise while Las Vegas Sands fell 2% as Wall Street sounded a cautious note on the company, especially since its first-quarter results missed the bottom line.