The party hit a tax bill
The basic storyline here is almost too neat: a stock market has been ripping, tech companies have been minting profits, and then politicians floated the idea that citizens should get a bigger cut. Investors heard that and did what investors do best—reprice everything, immediately.
Why you should care
When a market’s been running hot, it doesn’t take much to knock it off its tiptoes. Taxes are especially nasty because they hit the one thing Wall Street loves most: future earnings. Higher levies can mean less cash for buybacks, slower reinvestment, and a little less magic in those growth stories everyone’s been chasing.
The bigger picture
This is the classic reminder that markets don’t just care about profits—they care about who gets to keep them. And once governments start eyeing booming sectors as a source of revenue, the mood can flip from champagne to “wait, what’s the after-tax number?” pretty quickly.
Big picture: if this tax idea sticks, investors may need to price in a less carefree, more heavily negotiated version of the rally.