Reports that the Biden administration will seek to nearly double the capital gains tax hit market sentiment on Friday, distracting investors from positive economic news.
Wall Street’s main indices ended Thursday down nearly one per cent after the first reports broke of the possible hike that would cut into earnings made on selling stocks.
At the open on Friday, the Dow slid 0.2 per cent lower, but both the S&P 500 and Nasdaq Composite made modest gains.
“Investors did not respond kindly to this news and global stocks have pulled back with a return to risk-off moods today,” said XTB analyst Walid Koudmani.
European stock markets fell despite bright survey data for the region, with sentiment hit by US tax hike fears after a subdued Asian session.
