Wall Street closes in red after unveiling of tax reform
Following a strong start to the day, U.S. stocks fell back into the negative territory at the end of the session following the announcement of Trump's administration proposed tax plan.
Trump administration's proposal includes a cut to the tax rate on corporate and pass-through business profits to 15% percent as well as an elimination of targeted tax breaks that mainly benefit the wealthiest taxpayers. U.S. Secretary of Treasury Steve Mnuchin pointed out that the administration was determined to get the tax reform done by this year.
- Full summary of Trump's tax plan
After the press conference at the White House, it was unclear whether or not the plan to cut corporate taxes in an effort to boost economic growth would be paid for. If the proposed reform increases the national deficit beyond a 10-year window, it would require 60 senators to approve the changes in order for the bill to pass through the Senate. Considering there are only 52 Republicans in the Senate, the process is bound to be complicated.
At the end of the day, the Dow Jones industrial average was lost 21.03 points, or 0.1%, to 21,034.14, the S&P 500 was down 2.75 points, or 0.21 percent, at 2,382.25 and the Nasdaq Composite was flat at 6,025.23.
Headlines from the U.S. session
- Forex today: you can't get much more political in FX as that, dollar gets whacked
- Oil back under pressure after EIA report-led rally
- U.S. President Trump's advisers to hold a meeting on Paris climate's agreement on Thursday
- U.S. President Trump close to notifying Canada, Mexico of NAFTA withdrawal intent - Washington Post
- Freedom Caucus to support new Healthcare bill - Fox News
- White House prepares order on withdrawing from NAFTA - Politico
- U.S. commercial crude oil inventories decreased by 3.6 million barrels - EIA