US stocks open sharply lower on worries over tax plan delay

   •  Stocks pull back sharply from all-time highs.
   •  US tax legislation worries trigger profit-taking.

Major US equity indices opened sharply lower on Thursday and pulled back from all-time highs amid uncertainty surrounding the Republican-led tax-cut legislation. 

Investors now seemed to have turned increasingly nervous following the Washington Post report on Tuesday, suggesting that Senate Republicans may delay corporate tax cut by 1-year. Senate Republicans are expected to unveil a tax plan today. 

Hopes that the US President Donald Trump’s administration will deliver major US tax reforms had been one of the key factors driving the markets higher since the beginning of this year. Hence, if the legislation diverges from the bill put forth by House Republicans could further dent investors’ sentiment and trigger a near-term correction.

During the opening hour of trade, the Dow Jones Industrial Average was down around 125-points to 23,436, while the broader S&P 500 Index lost nearly 16-points to 2,578. Meanwhile, tech-heavy Nasdaq Composite Index underperformed the broader markets and slipped over 65-points to 6,723.