NYSE Closes Lower amid Fear of Tax Hikes

The New York Stock Exchange (NYSE) finished Tuesday lower amid expectations of a tax increase by the Biden administration to fund spending on infrastructure, combating climate change, investing in renewable energy, and job creation, as well as the $1.9 trillion stimulus package.

The Dow Jones Industrial Average dropped by 308.05 points, or 0.94%, to settle at 32,423.15 points.

The S&P 500 index declined by 30.07 points, or 0.76%, to close at 3,910.52 points.

The Nasdaq Composite Index lost 149.85 points, or 1.12%, to finish at 13,227.70 points.

The Joe Biden administration is reportedly planning to propose tax hikes, reversing large sums of Trump’s tax cuts in 2017, as well as ending federal subsidies for oil companies.

Remarks by Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen in front of the House of Representatives Financial Services Committee had little to no impact on the market, as they mostly reiterated their previous expectations for a brief safe rise in inflation rates and a positive impact from the relief package.