US equities suffered the worst day of 2017 until now when it went lowest on January 30. The DJIA or Dow Jones Industrial Average dropped approximately 120 points. This exchange has earlier dropped about 223 points, to dip below 20,000. Maximum losses were made by Goldman Sachs. The Standard & Poor 500 went down by 0.6 percent. In this case, the energy sector was the biggest loser with a slide of 1.7 percent. Also under performing was NASDAQ composite, crashing to the tune of 0.8 percent.
According to John Conlon of People’s United Wealth Management, the events are due to Trump’s immigration policy and what it represents. The markets have also noted the way how Trump manages his administration. The chief investment officer of the company said that a major policy was implemented with haste, thus causing uncertainty.
Similar thoughts were echoed by Peter Cardillo of First Standard Financial. The chief market economist said that President Trump is the cause of a lot of worries. Many finance professionals now believe that these negative sentiment could influence economic and earnings data.
This happened due to new immigration measures being adopted by the Trump administration. The executive order, signed later in the day on January 27, will temporarily prohibit all citizens of six predominantly Muslim countries to set foot into the United States. The order will cover Iraqi, Yemeni, Sudanese, Somali, Syrian and Libyan citizens. These citizens must undergo extreme vetting procedures and only then they will be permitted to enter the US. These measures, according to Trump, were crafted to keep dangerous Islamic terrorists away.
This downside is a new experience for the Trump led US stock markets. The latter have enjoyed a substantial rally after the GOP leader came to power. The Dow and Standard & Poor was 9.61 percent and 7.25 percent up respectively from November 8. All these have changed now, with almost all major markets toppling down.
Traders have hedged their money on a slew of promises made by Trump. These includes tax reform and infrastructure spending. They also hope that growth would be boosted by the promised deregulation, as earnings should hopefully continue to grow. In the opinion of Jameel Ahmad of FXTM, although investors have earlier noted the positive impacts of deregulation and infrastructure spending, they are now coming to terms with incoherent policies now pushed by the Trump administration.