The stock market is the closest thing America has to an instant gauge on economic news. Even if it is an often fickle judge, the stock market bears watching when economically relevant news breaks.
Stocks fell sharply on Thursday after the Washington Post reported that the Senate Republican tax plan would delay the cut in the corporate tax rate until 2019. While some in the Senate have objected to the delay, they were overruled by Senate Republican leaders, the Post reported.
The one year delay would lower the cost of the tax bill by $100 billion, according to the newspaper. But it would likely dull the economic impact of tax cuts by encouraging companies to delay repatriating foreign profits or making investments until they can take advantage of the lower rate.
The Dow Jones Industrial Average, which closed at a record high on the anniversary of the election of Donald Trump, fell by more 200 points. The S&P fell by 1 percent. The information technology sector fell by 1.8 percent. The broader index was on track for its worse day in 3 months.