– This is the script of CNBC's news report for China's CCTV on April 27, Thursday.
Welcome to CNBC Business Daily, I'm Qian Chen.
U.S. equities failed to hold earlier gains on Wednesday as investors digested President Donald Trump's outline for tax reform.
The Dow Jones industrial average closed lower after rising as much as 74.78 points.
The S&P 500 also fell slightly after flirting with an all-time high.
The Nasdaq composite notched an all-time high earlier in the session, but finished marginally in the red.
Meanwhile, the dollar index fell during the intraday trading. Analysts believe that the discussion around the tax plan was still positive, but the market was not excited and still got some questions about some of the details.
Ahead of the announcement, investors were expecting to hear details on the repatriation rate of profits, which means overseas earnings brought back to the U.S.
However, the memo from the White House just stated, "one-time tax on trillions of dollars held overseas.
Therefore, stocks like Apple with large overseas cash hoards fell Wednesday after Trump's tax plan failed to reveal a specific rate for repatriating overseas profits.
But analysts believe the rate, once announced, would fuel the market.
[ROBERT PAVLIK, Boston Private Chief Market Strategist] "And if we do get that 10% on the repatriation of cash from overseas, I think you are gonna see the market really start to take off. Becuase that money will go directly to share buybacks and I think that's gonna help fuel the growth expect in the overall market."
Meanwhile, the plan from Trump does not include the border adjustment tax or elimination of the net interest deduction. The two policy changes could raise more than $2 trillion to the US economy over 10 years.
And the argument in favor of a plan that widens the deficit is that it would increase growth and could make the tax cuts self-financing by adding new tax revenue to the economy.
[JONATHAN LIEBER, Eurasia Group Director, US Practice] "The growth effect of this tax cut is somewhere in the range from 3 to 4 trillion dollars over 10 years, which is the time horizon that congress uses to score bills. There will be some of that money raised, made up for dynamic scoring, the economic growth effects of these tax cuts, and then some people are gonna pay more in taxes, which will bring down the cost of this tax bill, but we really dont have a good idea of just how big the deficit increase D Trump is pushing here. And again, I really think that's the key factor thats gonna determine the success or failure of this plan in Congress."
And now, it marks the opening round in a long battle to find a compromise tax plan in the Congress.
CNBC's Qian Chen, reporting from Singapore.