U.S. stocks closed lower Thursday on worries over a possible delay in the corporate tax cut.
However, the main indexes trimmed losses after the House Ways and Committee approved a bill to overhaul the tax code. This set up a vote by the full House.
Stocks recorded their worst session in two weeks. In addition, the Dow snapped a seven-day win streak.
Stocks were initially battered by fears that cuts would be delayed. The Senate Finance Committee released its version of a plan that would defer implementing a 20% corporate rate until 2019. House Republicans had earlier proposed that the cuts take effect next year.
Nevertheless, some of those jitters were soothed when the House Ways and Committee passed the bill put forth by the Republicans. This bill proposes cutting the corporate rate to 20% from 35%. Furthermore, it would repeal the estate tax over time. Meanwhile it would revise the existing seven tax brackets into four.
The bill will now move to the House floor for a vote. This will happen possibly as soon as next week.