Shares of banks and other financial institutions rose as traders bet Treasury yields would continue to rise in light of rising inflation.
In the latest development, House Democrats are set to propose raising the corporate-tax rate to 26.5% from 21% and imposing a 3-percentage-point surtax on individual income above $5 million.
"Tax reform, not reduced economic growth forecasts, is the key risk to U.S. equities through year-end 2021," said strategists at brokerage Goldman Sachs Group, in a note to clients. "The stock market is only partially pricing an increased tax rate in 2022."
Bonds of Chinese property developers tumbled as one of the largest, China Evergrande, remains under pressure. Shares of developer Soho China tumbled after U.S. investment firm Blackstone abandoned a $3.3 billion takeover, citing an unexpectedly long regulatory review.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
09-13-21 1713ET
