Dow and S&P tumble after Trump’s Supreme Court ruling on taxes

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Actions were mixed before decision, but fell firmly into negative territory after it was released islate morning.

Since then, the top three indices have rebounded from their worst losses – and the Composite Nasdaq (COMP) has even returned to green, with technological stocks being among the best performing. The index was up 0.2% early in the afternoon, putting it on track for a historic close high.

the Dow (UNDUE) down 1.3%, or about 325 points, while the S&P 500 (SPX) fell 0.7%.

The stock market has been extremely volatile in recent months – selling out when coronavirus cases jumped and rebounded in hopes of an economic recovery. But the Supreme Court ruling forces investors to think about the November presidential election, adding more uncertainty to an already bleak future.The move may have troubled some investors who, up to now, have not taken former Vice President Joe Biden’s offer for the White House seriously, said Fawad Razaqzada, market analyst at ThinkMarkets.

Traditionally, a Democratic administration would be viewed as less business-friendly than a Republican administration, although this electoral cycle seems to overturn this idea, as stocks have risen even though Biden has taken the lead in the polls.

Trump has long been viewed as a relatively pro-market candidate, not least because of his promises of a massive infrastructure bill and now because of unprecedented fiscal stimulus to get the economy through. the pandemic recession.

But the prospect of moderate Biden policies that could help a weak economy seems to appeal to investors.JP Morgan (JPM) even anticipates that a Democratic sweep in the fall could help stocks.

Biden will speak about his economic program this afternoon, including his plan to boost manufacturing and create new jobs in addition to bringing the lost back to the pandemic.

Matt Egan and Eric Bradner contributed to this report.

Clarification: a previous version of this story and this title distorted the decision of the Supreme Court. The court did not compel the president to deliver his statements, but ruled that prosecutors could request these documents.

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