Biden’s Tax Hike TERROR: How Wall Street Could be ROCKED by Proposed Wealth Changes

President Biden’s proposed tax hikes present a significant challenge for Wall Street and could potentially weaken the U.S. economy, warns the Tax Foundation. Investors should pay close attention to these developments.

Biden’s fiscal 2025 budget blueprint is packed with proposed tax increases aimed at corporations and wealthy Americans. These include a 25% minimum tax rate for households worth over $100 million, a higher capital-gains tax rate, and a fourfold increase in corporate stock buyback tax to 4%.

Despite these looming increases, the market remains fairly stable. The S&P 500 rose slightly by 0.1% to reach 5,211.49, while the Dow Jones Industrial Average dipped by 0.1%, settling at 39,127.14.

GE Aerospace led the S&P with an impressive surge of nearly 6.7%. Cal-Maine Foods’ stocks also saw an approximate increase of 3.6%, boosted by profits exceeding expectations.

However, it wasn’t all positive news:

Intel’s stocks fell roughly by 8.2% after revealing financial losses in its foundry business — a revelation that unsettled investors.

Disney’s stocks also decreased by around 3.1%. The company’s decision not to appoint an activist investor to its board caused unease among traders.

Despite potential economic challenges ahead, traders remain optimistic according to internet s and social media discussions.

This week’s Relative Strength Index (RSI) is around the neutral zone at “62”. Traders should proceed with caution as we approach the “overbought” territory.

In conclusion:

Investors must stay alert to Biden’s proposed tax hikes as they could negatively affect market sentiment and prices, particularly considering their potential impact on economic productivity and job loss.

While current market sentiment leans towards bullishness, investors must remain vigilant. The RSI indicates a neutral market condition that could quickly change.

Traders must stay informed and prepared for any market shift, whether upward or downward. As the old Wall Street adage goes: “The trend is your friend!