Stocks fall on Wall Street amid worry over GOP tax reform plan

By Noel Randewich

South of the border, cautious investors initiated a sell-off, with technology and industrial companies taking the biggest losses, after Senate Republicans surprised Wall Street by proposing a delay in cutting corporate taxes.

Investors are nervous about the potential outcome of a Republican plan to cut corporate taxes, unveiled last week.

"Once you delay it, the more time that goes on the more further changes can happen".

The Nasdaq composite retreated 39.07 points, or 0.6 percent, to 6,750.05.

The Nasdaq is down 14.38 points, or 0.2 percent.

"The stock market has run out of a little momentum", said Societe Generale strategist Kit Juckes.

American equities took a beating after news that Republicans' plans for tax reform were being pushed back until 2019. "We probably need to get U.S. Treasury yields higher to get things going again". Both bills would lower that rate to 20 per cent from 35 per cent.

MSCI's all-country equity index is clocking year-to-date gains of nearly 19 per cent.

Dow e-minis were down 69 points, or 0.29 percent, with 41,821 contracts changing hands.


On the energy front, pipeline giant TransCanada Corp.'s stock dipped 0.29 per cent to $61.75 after it reported revenue fell to $3.24 billion compared with $3.63 billion in the same quarter a year ago.

"There's very much a risk of disappointment".

US stock index futures were slightly lower on Wednesday, a day after the Dow closed at a record high for the fourth straight day, as investors closely watch Republican efforts to pass the tax bill.

Some also focused on fallout from Democrat wins in regional USA elections this week as a signal for next year's mid-term congressional elections for President Donald Trump.

The Dow tumbled by 248 points after it was revealed Donald Trump's long-promised corporate tax cut would be postponed.

In commodities, the December crude contract added 36 cents to US$57.17 per barrel and the December natural gas contract was up three cents to US$3.20 per mmBTU.

The December gold contract was down 50 cents to $1,283.20 an ounce and the December copper contract was down two cents to $3.08 a pound.

Cryptocurrency bitcoin skidded about 3 per cent but not before dipping nearly 5 per cent.

United States indexes opened lower on Thursday, retreating after record highs in the previous session.

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