U.S. equity markets ended mixed Wednesday as details of President Biden’s $2 trillion infrastructure package were released on the final day of the first quarter.
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The Dow Jones Industrial Average slipped 85 points, or 0.25%, while the S&P 500 and the Nasdaq Composite climbed 0.37% and 1.54%, respectively.
The Biden administration says its so-called American Jobs Plan will be a “once-in-a-century capital investment” in U.S. infrastructure that will create millions of good-paying jobs that positions America to “out-compete” China.
Bank of America notes the biggest beneficiaries will likely be industrial and material stocks. Tesla also rallied as electric-vehicle makers are expected to benefit.
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The $2 trillion plan will be entirely funded by Biden’s proposed Made in America Tax plan that would hike the corporate tax rate to 28%, up from 21%, and increase the minimum tax on multinational corporations to 21%. The increase in the corporate tax rate would partially undo former President Donald Trump’s tax cut which lowered the top corporate rate from 35%, among the highest in the world.
Biden will officially unveil the plan at a speech in Pittsburgh later on Wednesday…Read more>>