U.S. stocks turned lower Thursday on news reports that President Biden is considering nearly doubling capital gains taxes on the wealthy.
Major indexes had been wavering between small gains and losses for much of the session before the swift shift in sentiment. The S&P 500 and the Dow Jones Industrial Average dropped 1.2%, while the technology-heavy Nasdaq Composite fell 1.3%.
Bloomberg News reported Thursday afternoon that Mr. Biden is planning a capital gains tax increase to as high as 39.6%, an increase from the current 20%.