‘Trump trade’ takes a fast turn
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.