Wall Street slips as tax debate grows

Wall Street slips as tax debate grows

US markets were lower in early trade on Wednesday, amid intensifying debate over the Republican tax proposal, which markets hope will lead to lower corporate taxes.

Even as Democrats won in local elections, the influential Club for Growth, an organisation that pushes for tax cuts, said the bill did not go far enough.

The Dow Jones slipped 31 points, or 0.13% to 23,525 and the broader S&P 500 declined 3.3 points or 0.13% to 2,587.

The Nasdaq dipped 4.35 points or 0.06% to 6,763.

US markets have rallied this year, as global economic growth boosts corporate earnings and traders bet that Republicans will lower corporate taxes.

The party unveiled a sweeping proposal last week, but its odds remain uncertain, amid criticism from the left and right.

Banks, among the firms expected to see some of the greatest benefit from the tax changes, were generally lower in early trade on Tuesday. JPMorgan Chase fell 0.7%, while Bank of America fell 1.4%.

Analysts said higher Treasury yields were also a factor.

But Goldman Sachs got a boost after it said it had installed new leaders for its struggling fixed-income division. The bank’s shares were up 0.43% in early trade.

Source: BBC News

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