US stocks drop as investors weigh inflation concerns against reports Biden may pare tax hikes

• US stocks pared back earlier losses but closed lower on Thursday with mega-cap tech stocks and Tesla in the red.
• Biden has floated creating a 15% minimum tax for corporations rather than pursuing his proposed corporate tax rate increase, according to a report.
• Wall Street is also focused on how strong jobless data out today will impact Fed policy.

US stocks pared back earlier losses but closed mostly lower on Thursday as investors mulled over a new report that Biden may be open to a lower tax hike.

Biden has floated creating a 15% minimum tax for corporations rather than pursuing his proposed corporate tax rate increase, according to The Washington Post.

Mega-cap tech stocks led losses, with Apple, Google, Facebook, and Amazon all down at least 1% Thursday. Tesla fell as much as 5%.

Here's where US indexes stood at the 4:00 p.m. ET close on Thursday:

• S&P 500: 4,192.85, down 0.36%
• Dow Jones industrial average: 34,577.04, down 0.07% (23.34 points)
• Nasdaq composite: 13,614.51, down 1.03%

Wall Street is also focused on how strong jobless data out today will impact Federal Reserve policy and prospects for inflation.

ADP's monthly payrolls report showed businesses adding 978,000 jobs through May, handily exceeding the median estimate for 650,000 payrolls. Meanwhile, weekly jobless claims fell below 400,000 for the first time since the pandemic slammed the US in March 2020.

Taken together, the ADP and claims data suggest Friday's jobs report could show a sharp rebound in hiring following the disappointing April reading. May's US non-farms payroll data will be released on Friday.

Tesla shares extended earlier losses to as much as 5% on Thursday after a report from The Information said China orders halved in May.

The meme-stock of the moment, AMC, tumbled more than 30% during Thursday's session after the movie-theater chain filed a plan to sell nearly 12 million shares and cautioned investors they face potential losses.

One of the original meme stocks, Eastman Kodak, is back under the spotlight as theNew York Attorney General said the CEO engaged in insider trading when he purchased Kodak negotiating with the White House for a $655 million loan. Kodak denies the insider trading allegations, noting that the CEO has never sold any stock.

West Texas Intermediate crude was up 0.06%, to $68.87 per barrel. Brent crude, oil's international benchmark, was largely flat at $71.34.

Gold was down 1.9% to $1873.70 an ounce.