As the Democratic Party has gained a positive momentum in the US Senate Election, the stocks have come down in the United States of America on the fear that the chamber controlled by the Democrats may increase the taxes on corporates.
At present, the US House of Representatives is controlled by the Democratic Party. If the Republican controlled US Senate turns in favour of the Democratic Party, Joe Biden, who is scheduled to take charge as the new President of the United States of America, can easily push forward any change in the corporate tax framework.
The latest trends indicate that the Democratic Party will gain a clear victory in the US Senate, which is at present controlled by the Republican Party.
Clearly, the US corporate sector is not in favour of the rise of the Democratic Party in the United States. What the fluctuation in the stocks indicates is the said reality.
It is yet to be seen how the Democratic Party will utilise the favourable political circumstance emerged post the US Presidential Election, in which Mr. Biden defeated his rival Donald Trump, who is the incumbent President of the United States of America.
In the US, the Democratic Party is a very powerful political force.
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