Wall Street faced renewed turbulence this week as a combination of political and corporate developments reshaped investor sentiment. Treasury Secretary Janet Yellen announced a proposed 1.5% excise tax on corporate stock buybacks, an increase from the existing 1% rate introduced under the Inflation Reduction Act. The proposal, aimed at encouraging companies to reinvest profits into business growth and worker wages, is expected to be included in the Biden administration’s upcoming budget plan. The announcement sent shockwaves through sectors heavily reliant on buybacks to boost earnings per share, particularly among large-cap tech and energy firms. Analysts at Goldman Sachs estimate the higher tax could reduce S&P 500 share repurchases by approximately 5% in 2025 if passed. Adding to market jitters, several major corporations reported mixed earnings. Retail giants such as Walmart and Target delivered better-than-expected results, buoyed by resilient consumer spending. However, tech behemoths like Alphabet and Tesla missed revenue forecasts, citing weaker advertising demand and supply chain constraints, respectively. Meanwhile, regulatory scrutiny over insider trading activities intensified. The Securities and Exchange Commission (SEC) disclosed that it is investigating several high-profile executives for alleged stock sales ahead of unfavorable earnings announcements. While no charges have been filed, the news contributed to broader concerns about corporate governance practices, particularly in the technology sector. "The combination of political headwinds, uneven corporate earnings, and heightened regulatory oversight is creating a more challenging environment for equities," said Julia Harris, chief market strategist at Beacon Investments. "Investors should brace for continued volatility as policy and earnings narratives evolve." Markets responded accordingly: the S&P 500 declined 1.2% on Wednesday, while the Nasdaq Composite slid 1.8%. Treasury yields also edged higher as investors sought safer assets amid the uncertainty. Looking ahead, all eyes will be on upcoming Congressional negotiations over the budget proposal and further corporate earnings reports, which could either calm or exacerbate market volatility in the weeks to come.