S&P 500: The S&P 500 may have gotten spooked by Biden's corporate tax hike proposal

 


The S&P 500 tumbled 1.85% on Thursday as President Biden unveiled his proposal to raise the U.S. corporate tax rate to 28% from 21%. The argument by the House Committee on Ways and Means in May 2022 against higher corporate taxes said that its net effect could be to increase inflation pressures.

The market is pricing in a possible 50-basis point hike at the FOMC meeting on March 22. A better-than-expected NFP report (225k) on Friday could send the S&P 500 down to test its bear market territory at 3,855. There is a trendline support at around 3,825 if the 3,855 level can't hold.

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!

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