‘Trump trade’ takes a fast turn

The Washington Post Sunday - - MAR­KETS -

U.S. stocks fell the most since the week lead­ing up to the U.S. elec­tion as Pres­i­dent Trump suf­fered a ma­jor set­back when he was forced to pull his health-care bill from a vote amid dis­sent among con­gres­sional Repub­li­cans. In­vestors also turned to bonds as U.S. Trea­surys ral­lied for the sec­ond week.

Both con­ser­va­tives and mod­er­ates op­posed the bill even after Trump met per­son­ally with scores of law­mak­ers and trav­eled to Capi­tol Hill on Tues­day to ad­dress House Repub­li­cans. The set­back also cast doubt on the pres­i­dent’s abil­ity to shep­herd other parts of his agenda, in­clud­ing promised tax cuts and reg­u­la­tory re­form, through Congress.

The Stan­dard & Poor’s 500-stock in­dex lost 1.4 per­cent to end at 2343.98. The Dow Jones in­dus­trial aver­age lost 1.5 per­cent to 20,596.72, as small-cap stocks in the Rus­sell 200 In­dex erased 2.7 per­cent.

“Mar­ket par­tic­i­pants feel fu­ture Trump agen­das like tax re­form and fis­cal stim­u­lus are less likely to oc­cur if the re­peal and re­place of the Af­ford­able Care Act does not pass,” said Char­lie Ri­p­ley, in­vest­ment strate­gist at Al­lianz In­vest­ment Man­age­ment.

The Trea­sury will sell $39 bil­lion of three­month bills and $33 bil­lion in six-month bills Mon­day. They yielded 0.79 per­cent and 0.90 per­cent in when-is­sued trad­ing. It will sell $26 bil­lion in two-year notes. On Tues­day, it will sell $20 bil­lion in 52-week bills and $34 bil­lion in five-year notes, as well as four-week bills. Edi­tor’s note: Go­ing for­ward, our weekly com­pos­ite stock list­ing in­cludes com­pa­nies based in Wash­ing­ton or with a strong pres­ence here. The rest of the ta­ble shows firms as ranked by mar­ket cap­i­tal­iza­tion. And we’ve added year-to-date data be­cause read­ers told us it would be use­ful.

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