Stocks slide amid focus on taxes

Stocks fell while the dollar strengthened and Treasuries nudged higher as investors turned their attention to fiscal policy, with tax writers from the House of Representatives expected to hammer out their plan this week.

The S&P 500 Index drifted lower, led by financial companies, which were the worst performing group in the gauge. The Stoxx Europe 600 Index slipped, erasing an earlier advance, but remained close to an all-time high. The Nikkei 225 Stock Average climbed to a level last seen more than 25 years ago.

“Tax reform is the No. 1 thing on everybody’s minds right now,” said Michael Hanson, the chief U.S. macro strategist at TD Securities in New York. “The Senate has indicated they’re going to announce their own bill Thursday, and that bill is extensively based off of the House bill, but there’s likely to be some important differences.”

Equity indexes across the Persian Gulf were among the world’s worst performers amid a widening a crackdown on corruption in Saudi Arabia. The kingdom’s Tadawul All Share Index at one point fell the most in a year before regaining some of its losses. Oil slid from Monday’s climb, when it reached the highest price since June 2015.

“The current news backdrop argues against any correction in the near future: the latest developments in Saudi Arabia justify a risk premium on the oil price,” commodity researchers at Commerzbank AG wrote in a note Tuesday. “President Trump has expressly approved the clean sweep, which is likely to encourage the king and crown prince in their plans to build on their power and to take action against Iran.”