- Markets Insider
US stocks slumped in early trading on Monday after President Donald Trump failed to push through his health care bill, raising concerns about the rest of his economic agenda.
A Congress controlled by Trump’s Republican party on Friday pulled a bill to overhaul the Affordable Care Act or Obamacare, in a stunning setback for the President’s first major legislative move since taking office.
Investors took up defensive positions as the so-called “Trumpflation trade” looked to unravel. The dollar, which had found favor on the possibility of tax cuts and higher infrastructure spending, hit its lowest since Nov. 11, while prices of safe haven gold shot up to one-month highs.
At 9:32 a.m. ET, the Dow was down 147 points (0.72%), the S&P 500 was down 18 points (0.79%), and the Nasdaq was down 48 points (0.84%). The Dow was headed for its longest losing streak since 2011.
Financials, which had outperformed in the post-election rally on bets of simpler regulations and higher inflation, were down more than 2% in early trading.
Investors will look forward to comments from Chicago Federal Reserve President Charles Evans and his Dallas counterpart Robert Kaplan for clues on the timing of the next interest rate hike.
Fed Chair Janet Yellen is scheduled to speak at a conference on Tuesday in Washington.
Snap Inc was up 4.7 percent at $23.80 in premarket trading on Monday after multiple brokerages began coverage on the owner of Snapchat after the blackout period for its IPO underwriters ended.
Amazon.com was off 0.96 percent at $837.50 after Dubai’s Emaar Malls made an $800 million offer for online retailer Souq.com. Amazon has agreed in principle to buy Souq, according to sources.
Steel stocks, including AK Steel and United States Steel were down about 4 percent.
(Reuters reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)