President Donald J. Trump is now being critically appraised by Wall Street. Confidence among investors have waned even before the fiasco of the Republican Party on March 24 when the party could not bring to the vote an Obamacare replacement bill. American stocks were losing value all through March. The reducing values mirror the ability of Trump to deliver what he had initially promised during the campaign season. The dip continued on March 27, with S&P 500 index ending the day down by 0.1 percent.
Earlier, investors, delighted by Trump's unforeseen victory, has pushed share prices north. They believed his pledges of cutting taxes, elimination of all regulations and the massive infrastructure spending which will give a positive push to corporate investment. The Trump honeymoon, however, has almost come to an end after investors re-evaluate Trump's political capital. They have also noticed the snail pace of Washington's legislative developments.
The decline happened during the full trading day post House Republican leaders canceling American Health Care Act during the fourth week of March. Concerns rose among investors regarding this withdrawal. The DJIA or Dow Jones Industrial Average slid 0.2 percent, its lowest in a six week time span. The event also marked Dow's never before eight session long losing streak since the July 22 to August 2, 2011 period. That was the time when Washington fought over debt ceiling and a few days prior the downgrade of the country from its AAA rating provided by Standard & Poor's.
The Dow dropped to 20,550.98, a fall of 45.74 points. In comparison, there was a rise of 0.2 percent or 11.64 points by the Nasdaq Composite to reach 5,840.37. The Standard & Poor 500 index went on a 2.3 percent decline from March 1. This figure includes a drop of 2.39 points on March 28 to reach 2,341.59. The mood of the stock market was summed up by Charlie Ripley of Allianz Investment Management. He said that the Republican failure to bring bill to vote displayed that the path to pass the wanted legislation is longer than originally envisaged.
Other things to do
It is to be noted that the decision to cancel the bill destined to substitute Obamacare did not create much chaos in the American stock market. Many investors hope that despite the political setback, the Trump administration will turn its attention to other parts of the economic agenda which can be vital to the long term health of the market.