Stock Market Jitters Suggest Fading Optimism on Tax Cuts
Wharton's Siegel Says Global Bull Market Not Over Yet
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If the stock market offers any insight on the fate of Republican tax cuts, Tuesday’s trading seems to be signaling the bill’s prospects have dimmed somewhat.
As the debate rages on the specifics of the House proposal, stocks seen as the biggest beneficiaries of any cuts are moving lower. The KBW Bank Index fell the most since September, while the Russell 2000 Index of smaller companies headed for its worst day in almost three months. A Goldman Sachs basket of stocks with the highest effective tax rate fell 0.4 percent as of 2 p.m. in New York, compared with a gain of 0.1 percent for those with the lowest burden.