The Latest: Stock prices plunge as US economy continues to slow
Market shares fell on Thursday after President Donald Trump’s tax cut bill passed Congress.
The Dow Jones Industrial Average plunged by 3.1 percent, while the S&P 500 dropped 2.2 percent.
The Nasdaq Composite index fell 3.5 percent.
In a statement, the Trump administration said that it was “pleased that the bill passes” and would provide “financial relief” to Americans.
“The American people have spoken loud and clear: tax cuts will not be handed out to the rich,” said Treasury Secretary Steven Mnuchin in a statement.
“As they are expected to receive billions of dollars in tax cuts, we are pleased to see that the House passed the tax cut package and will work with the Senate to finalize the legislation.”
The Dow, the S, and the Nasdaq have all fallen since Trump’s victory.
“Trump’s plan will help the economy grow, create jobs, and create new revenue for Americans, and it will strengthen the middle class,” Mnuchin said.
“In fact, we believe that tax cuts for everyone in the United States will create more jobs and better wages.”
The House passed Trump’s plan.
The Senate did not pass the bill, which could delay a decision by the White House on the president’s final proposal.
Trump had been expected to sign the tax bill on Wednesday night, but the legislation was not expected to be passed before the holiday weekend.
On Friday, the House and Senate voted to approve a bill to raise the federal debt limit.
The debt ceiling remains the highest-stakes test of Trump’s ability to keep his promises to Congress.
He said that he will sign the bill when the debt ceiling is raised on Dec. 15.
“If the debt limit is not raised on December 15, I will be forced to default on the national debt,” Trump said in a tweet Thursday.
The president has promised to use the debt as leverage to renegotiate the terms of the deal.