Traders losing confidence in Trump
Markets have been reflecting traders concerns that Trump might not be able to pass the new healthcare bill on Thursday, throwing doubt on his ability to pass any of his tax and spending initiatives down the road. As a result, we have seen some serious movements in the markets the last couple of days, as traders flocked to safe haven assets.
Stocks, which had been enjoying record highs had an overnight sell off. The S&P 500 bore the brunt of the shift, dropping a whopping 1.2% yesterday, experiencing the first drop of this magnitude since October. The Dow was not far behind closing with round about a 1.14% drop. Gold, however, has continued enjoying its status, reaching a 3-week high on its 5th consecutive day of climbing, settling at the moment just below 1250. The U.S dollar index was not the headline, staying steady for now floating around a seven week low.
All eyes will be on headlines from Washington, to see if Trump can back up his big talk with political sway and numbers in the house.