Economy

How major USA stock indexes fared on Thursday

How major USA stock indexes fared on Thursday”

USA stocks skidded Thursday after Senate Republicans surprised Wall Street by proposing a delay in cutting corporate taxes.

The S&P 500 is down 3.22 points, or 0.1 percent.

Investors were unnerved by not only the delay in tax cuts, but by a competing bill from Congress that will likely result in prolonged negotiations and further erosion in post-election market sentiment. United States losses accelerated mid-morning when rumors circulated that the Senate tax bill would put off a reduction in the corporate tax rate until 2019 and persisted until the Dow bottomed out at a two-week low.

The S&P 500 has risen about 21 per cent since the election of President Donald Trump a year ago, partly on the back of his promises to cut taxes and other business-friendly measures.

The Nasdaq has fallen by the most (-0.6pc), followed by the Dow Jones (-0.4pc) and S&P 500 (-0.4pc).

The information technology sector fell by 1.8 percent.

At 1:14 p.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 55.66 points, or 0.35 per cent, at 16,049.69. Of the index's 10 main groups, seven had lost ground, including a 1-per-cent drop in materials stocks.

"The stock market has run out of a little momentum", said Societe Generale strategist Kit Juckes.

Ongoing uncertainty as to how the Senate tax plan - which is set for release later today - would differ from the House Republican version and how it would impact corporations and individual tax filers continues to weigh on markets. "We probably need to get U.S. Treasury yields higher to get things going again".

All three major three indexes have gained at least 15 per cent each in the year to date.

Stocks have been on a tear lately, with the Dow yesterday powering to its 59th record high of the year and a 19.2% gain in 2017.

Declining issues outnumbered advancing ones on the NYSE by a 2.02-to-1 ratio; on Nasdaq, a 1.82-to-1 ratio favored decliners.

"There's very much a risk of disappointment".

The Canadian dollar was trading at 78.75 cents USA, up from an average price of 78.56 cents US on Wednesday.

"Markets have focused on a corporate tax cut for the entire year since Trump won", says David Kotok, chief investment officer at Cumberland Advisors, a money management firm based in Sarasota, Fla.

Hang Seng Index was up 0.79%.

Shanghai China Composite Index was up 0.36%.

Many analysts have been warning that the market was due for a pullback, after racing higher and higher without any significant pullback.

The December crude contract was up 49 cents to $57.30 (U.S.) per barrel and the December natural gas contract was up one cent to $3.19 per mmBTU.



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