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BIDEN’S Billionaire Tax: Why Wall Street is Holding ITS Breath for the State of the Union Address

Brace for potential financial shifts as President Joe Biden prepares to deliver his upcoming State of the Union address, an event closely watched by Wall Street.

Biden’s plan includes raising corporate taxes from 21% to 28% and introducing a new minimum tax on corporations earning over $1 billion, which will increase from 15% to 21%. His strategy also aims to limit executive pay and reduce corporate tax deductions. The highlight? Reviving the “billionaire tax” scheme, imposing a 25% minimum income tax on Americans with wealth exceeding $100 million.

These policy proposals are expected to feature prominently in next week’s fiscal announcement. Investors, stay alert.

Asian markets ended positively last Friday due to anticipated lower interest rates. Japan’s Nikkei rose by 0.2%, Sydney’s S&P/ASX surged by a significant 1.1%, while South Korea’s Kospi followed suit.

Wall Street also experienced gains:

The S&P500 maintained its upward trend, marking its sixteenth record peak this year. It appears set to achieve its seventeenth successful week out of nineteen this year, easily overcoming previous setbacks.

Despite uncertainties stemming from Biden’s proposed changes, online sentiment towards stocks remains predominantly positive.

However, there were notable fluctuations:

Microsoft Corp saw its prices drop -9.28 (volume:9596782), Tesla Inc took a -27.30 hit (volume:60603011), while Walmart Inc had a modest increase of +1.36 (volume:-36412913). NVIDIA Corp experienced a significant rise of +52.49 (volume:119395182), and Exxon Mobil Corp saw prices climb by 2.54 (volume:9482915).

The market trend indicates falling prices as volume increases, suggesting a strong downtrend.

This week’s market RSI stands at 57.53 — positioning the market in neutral territory with no signs of an imminent reversal.

Investors should closely monitor Wall Street in the coming week as potential policy changes from Biden’s address could incite market volatility.

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