S&P 500 jumps, tax hike likely to be “scaled back”

Markets were mixed on Friday, with the S&P 500 the outperformer among major markets, rising 1.1 percent.

US President Joe Biden's reported proposal to raise capital gains taxes for the rich remained a talking point in the market, with more analysts now saying that the impact on the market may not be that great.

“We expect Congress will pass a scaled back version of this tax increase,” wrote Goldman Sachs economists in a note.

“We would expect opportunistic investors who are unaffected by this proposal to step in and take advantage of lower prices,” UBS strategists said.