Stock Market Today: Threat of Capital Gains Tax Hike Thumps Stocks

A Thursday report that President Biden was set to propose a capital gains tax increase on the wealthiest Americans short-circuited optimism over jobs progress.

The IRS building in Washington, D.C. Bloomberg reports that President Biden will propose a hike to the capital gains tax
(Image credit: Getty Images)

After three days of placid macroeconomic news, the markets swung on a pair of big announcements Thursday – good news on the labor front, but bad news for wealthy Americans paying capital gains taxes.

Earlier in the day, investors were encouraged by another drop in weekly unemployment filings. Initial jobless claims for the week ended April 17 dropped by 39,000 to a recovery-era low 547,000.

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Kyle Woodley

Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Kyle was previously the Senior Investing Editor for, and the Managing Editor for before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism. 

You can check out his thoughts on the markets (and more) at @KyleWoodley.