Joe Biden's tax proposal sends the S&P 500 lower on the news

S&P 500 lower on Biden tax proposal

The S&P 500 was slightly lower on Thursday. The benchmark index stalled on news that President Biden was looking to adjust his corporate tax proposals.

It was reported that Biden was considering dropping his proposed plans to hike corporate tax rates by 28%. Settling instead at a minimum rate of 15% to appease Republicans.

Providing this were to be agreed, Republicans would have to green light the President’s $1 trillion new infrastructure spending plan.

Regarding today’s reports. Commerce Secretary Gina Raimondo stated that the President. “Is personally leaning in, willing to compromise, spending time with senators – Democrat and Republican – to find out what is possible”.

As of writing, the S&P 500 was trading 0.33% lower.

U.S. Jobless claims drops below 400,000

Weekly initial jobless claims in the United States continued to fall on Thursday. After the latest report by the Labor Department was released.

Figures from today’s report showed that initial claims for unemployment benefits fell 20,000 to 385,000 for the week which ended May 29th.

Today’s number is the lowest since the height of the pandemic which was mid-March of last year. Back when claims became a key economic indicator.

Claims fell slightly below forecasts of 390,000 applications for the latest week and come as markets await tomorrow’s NFP.

After coming in at 266,000 jobs in April, markets are forecasting payrolls to rise to 650,000 in the latest report.

A strong number could see the dollar begin to move away from current lows against G-7 currencies.

FTSE 100 falls as UK updates travel list

Britain’s FTSE 100 closed in the red in today’s trading session. As the UK government made some updates to its travel list.

The list, which was initially released 3-weeks ago, included 12 countries that holidaymakers were permitted to travel to without the need to quarantine on return.

One of the countries on the list was Portugal, which is typically a popular summer destination for Brits.

However, today Travel secretary Grants Schnapps confirmed that Portugal will no longer be on the list. Angering travelers and airline companies in the process.

Schnapps stated that, “Europe is probably 10 weeks behind. But they will catch up and I don’t know exactly what that will mean in terms of the summer. But the decisive action today is designed to protect the future, to make sure that we can do a domestic unlock or give ourselves the best possible chance of doing so. And that will also help us to unlock international travel given time”.

The FTSE 100 closed 0.61% lower on the news.

Quote of the day – “Focus, patience, wise discernment, non-attachment – the skills you acquire in meditation and the skills you need to thrive in trading are one and the same.”

– Yvan Byeajee

Eliman Dambell

Senior Market Analyst
edambell@tvmarkets.com