Home Stock Market Stock futures soar higher as investors shake off Biden tax worries

Stock futures soar higher as investors shake off Biden tax worries


Stock index futures ticked higher on Friday as investors looked at data on manufacturing and service operations a day after stock crashes following reports President Joe Biden will proposes a large increase in capital income taxes for the richest Americans.

The busy one-week corporate earnings report is coming to an end as well.

What are the key benchmarks doing?
  • Futures on the Dow Jones industrial average
    YM00,
    + 0.14%

    increased 44 points, or 0.1%, to 33,753.

  • S&P 500 future
    ES00,
    + 0.23%

    an increase of 9.30 points, or 0.2%, at 4,137.

  • Nasdaq-100 futures
    NQ00,
    + 0.20%

    increased 28.50 points, or 0.2%, to 13,778.75.

On Thursday, the Dow index
DJIA,
-0.94%

down 321.40 points, or 0.9%, for the biggest one-day drop since March 4, while the S&P 500
SPX,
-0.92%

and the Nasdaq Composite
COMP,
-0.94%

also decreased by 0.9%.

What drives the market?

Stocks turned south in early afternoon trading on Thursday after Bloomberg News and others reported that Biden would propose to raise capital interest tax rates from 20% to 39.6% on individuals who earn is over 1 million USD a year. While the reports seem to dampen sentiment, analysts note that the proposal is in line with Biden’s campaign promises and noted that expectations for the increase will be narrowed in parliamentary talks.

“The 39.6% number is very much in line with the campaign’s commitment and won’t be shocking, but the fact we’ve seen risk selling shows the market is much more sensitive to bad news and this “ Will happen when the freezing spreads, ” Chris Weston, head of research at Pepperstone, said in a note.

“The consolidation seems to fit into the order here in the short term and it feels like we are in a phase of price action change,” he said.

TaxWatch: Biden has pledged to tax the rich – but how exactly will he do it? Experts examine his options

Markit’s manufacturing and purchasing management metrics for April will arrive at 9:45 am Eastern time. Economists expect the manufacturing index to rise to 60.5 from 59.1, while the services index is expected to rise to 61.0 from 60.4. Readings over 50 show activity expansion.

New home sales figures in March were released at 10am Eastern time and are expected to rise to 888,000 seasonally adjusted annually from 775,000 in February.

Which companies to focus on?
What are other markets doing?
  • The yield on a 10-year Treasury note
    BX: TMUBMUSD10Y

    down 1.4 bps to 1,547%. Yields and bond prices move in opposite directions.

  • ICE US Dollar Index
    DXY,
    -0.34%
    ,
    monetary measure against a basket of six major players, down 0.3%.

  • Bitcoin
    BTCUSD,
    -3.72%

    plummeted in a move that some observers associated with tax worries, with digital assets falling below $ 50,000.

  • Oil futures rose, with US standards
    CL00,
    + 0.44%

    up 0.5% at $ 61.67 / barrel.

  • Gold futures prices rose higher, with June contract
    GCM21,
    + 0.31%

    increased by 0.3% at $ 1,787.20 / ounce.

  • In Europe, the index Stoxx 600
    SXXP,
    -0.44%

    down 0.4%, while London’s FTSE 100
    UKX,
    -0.52%

    fell 0.5%.

  • In Asia, the Shanghai Composite
    SHCOMP,
    + 0.26%

    up 0.3%, Hong Kong’s Hang Seng Index
    HSI,
    + 1.12%

    1.1% increase and Japan’s Nikkei 225
    I,
    -0.57%

    down 0.6%.

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