Wall Street has the rug pulled out by report that Biden is planning capital gains tax hike
Stocks were steadily improving until a sudden drop in the afternoon
4:20pm: Biden could raise capital gains top marginal rate to 39.6%
The Dow swooned in afternoon trading, shedding 321 points, 0.9%, to close at 33,816. The Nasdaq fell 132 points, 0.9%, to 13,818, and the S&P 500 dipped 38 points, 0.9%, to 4,135.
Traders reacted harshly to a report from Bloomberg News that President Biden plans to propose raising the capital gains tax rate for those earning more than $1 million to 39.6%, up from 20%.
12:30pm: Southwest gains on promising results
The Dow improved from an early deficit of more than 175 points, but was still down 47, 0.1%, at midday. The Nasdaq Composite crossed the flatline to gain 40 points, 0.3%, and the S&P 500 picked up almost 2 points to 4,175.