Investing.com – Risk off sentiment gripped Wall Street on Thursday, sending US stocks tumbling amid concerns that the Senate would delay corporate tax cuts until 2019.
The Dow Jones Industrial Average closed higher at 23,462. The S&P 500 closed 0.38% lower while the Nasdaq Composite closed at 6750.05, down 0.58%.
Senate Republicans on Thursday plan to propose delaying a cut in the corporate tax rate from 25% to 20% until 2019, The Washington Post reported on Thursday, citing four people brief on the planning.
On the economic data front, investors digested initial jobless claims that fell short of expectations, adding to the negative sentiment on equities.
The U.S. Department of Labor reported Thursday that initial jobless claims increased 10,000 to a seasonally adjusted 239,000 for the week ended Nov. 4, above forecasts of a 2,000 increase to 232,000.
Financials, mostly banks, continued to weigh on the broader market falling more than 0.5% amid fears over a flattening yield, which usually signals that investors are concerned about the strength of long-term economic growth and inflation.
The slump in U.S. equities follows a global rout which began overnight as the Nekkei reversed a 2% gains to end the day below breakeven.
In corporate earnings news, investors looked ahead to earnings from Disney, Nvidia and news Corp expected after U.S. markets close.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: Walt Disney Company (NYSE:DIS) up 1.9%, The Travelers Companies Inc (NYSE:TRV) up 0.8% and Nike (NYSE:NKE) up 0.7%
McDonald’s Corporation (NYSE:MCD), down 1.8%, United Technology down 1.7% and American Express (NYSE:AXP) down 1.5%, were among the worst Dow performers of the session