Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Stocks Post Biggest Drop of Year as Trump Trade Stalls
Stocks Post Biggest Drop of Year as Trump Trade Stalls
Dow industrials, S&P 500 decline more than 1% for the first time since October as confidence in Trump’s agenda wavers
U.S. stocks, the dollar and government-bond yields pulled back Tuesday, as major indexes notched their steepest declines of the year.
Bets that President Donald Trump would prioritize business-friendly policies led investors to pile into stocks and the U.S. dollar following the election while selling government bonds. But lately, some investors and analysts have expressed concerns that popular trades are getting overbought, making them vulnerable to a sharp pullback.
Many also say the prospect that House Republicans will be unable to gather the votes they need this week to dismantle the Affordable Care Act is adding to doubts that Mr. Trump will be able to push through tax cuts. That could put further pressure on stocks that have been trading near records and at historically high valuations.
“People are nervous that if the health-care bill doesn’t pass—and right now it doesn’t look like it will—what it means for other policies,” said Ian Winer, head of equities trading at Wedbush Securities. “People are in this market for the big tax overhaul. If they don’t get health care done, taxes aren’t happening, and the longer you wait for tax reform the less exciting the market is.”
The Dow Jones Industrial Average fell 238 points, or 1.1%, to 20668, posting its worst day since September. The S&P 500 fell 1.2% and the Nasdaq Composite lost 1.8%.
More: https://www.wsj.com/articles/buying-appetite-returns-to-global-markets-1490063629
Dow industrials, S&P 500 decline more than 1% for the first time since October as confidence in Trump’s agenda wavers
U.S. stocks, the dollar and government-bond yields pulled back Tuesday, as major indexes notched their steepest declines of the year.
Bets that President Donald Trump would prioritize business-friendly policies led investors to pile into stocks and the U.S. dollar following the election while selling government bonds. But lately, some investors and analysts have expressed concerns that popular trades are getting overbought, making them vulnerable to a sharp pullback.
Many also say the prospect that House Republicans will be unable to gather the votes they need this week to dismantle the Affordable Care Act is adding to doubts that Mr. Trump will be able to push through tax cuts. That could put further pressure on stocks that have been trading near records and at historically high valuations.
“People are nervous that if the health-care bill doesn’t pass—and right now it doesn’t look like it will—what it means for other policies,” said Ian Winer, head of equities trading at Wedbush Securities. “People are in this market for the big tax overhaul. If they don’t get health care done, taxes aren’t happening, and the longer you wait for tax reform the less exciting the market is.”
The Dow Jones Industrial Average fell 238 points, or 1.1%, to 20668, posting its worst day since September. The S&P 500 fell 1.2% and the Nasdaq Composite lost 1.8%.
More: https://www.wsj.com/articles/buying-appetite-returns-to-global-markets-1490063629
5 replies
= new reply since forum marked as read
= new reply since forum marked as read
