President Biden's tax plans scare off investors

The New York stock exchanges have revised their previous day's profits again. The reason that the indices slipped deeper into the red, especially in the second half of the day, was believed to be tax plans by US President Joe Biden. According to a report, this wants to tax capital gains more heavily in the future. The Dow Jones Industrial fell 0.94 percent to 33,815.9 points at the end. This did not come close to the previous record, which is already a week old with 34,256 points. The market-wide S&P 500 fell 0.92 percent to 4134.9 points. The technology-heavy Nasdaq 100 lost 1.24 percent to 13,762.3 meters. As the Bloomberg news agency reported, citing circles, Biden is willing to propose a capital gains tax of more than 40 percent for wealthy Americans. That would roughly double the levy, it was said. This has triggered speculation in the market that some investors are still paying their positions before the introduction in order to take advantage of the lower tax rate, experts said. According to market strategist Stephen Innes from the broker Axi, professional traders such as hedge funds would be particularly affected. "One point of concern is that these contribute a great deal to liquidity in the stock market," said the expert. He emphasized that the market had generally expected higher taxation. But it was not clear when this would come. Investors now expected an introduction sooner rather than later. Biden also created a topic of conversation with a new climate protection target. At an online meeting with 40 heads of state and government, the US president called for swift action. He himself announced that he intends to cut US greenhouse gas emissions by at least half compared to 2005 by the end of the decade. In the case of stocks from the alternative energies sector, this sparked imagination among investors; the stocks of First Solar, for example, rose by 4.2 percent. In terms of the individual values, the most recent quarterly reports were mostly positive. Shares in the telecommunications giant AT&T and the conglomerate Danaher posted significant gains of 4.2 and 3.5 percent, respectively. In both cases, the results exceeded the average analyst forecast.