Wall Street suffers the worst one-day decline of 2017
The long-anticipated correction since the record-setting performance following the Trump's election victory finally seems to have arrived as major US equity indices suffer the biggest daily drop since mid-October.
Investors remain on edge before Thursday's crucial health care vote as a defeat could be taken as a sign towards potential future setbacks on promised tax cuts and infrastructure spending. “With the health-care morass, the Trump effect is taking a little bit of a backseat in peoples’ minds,” said Steve Sosnick, an equity risk manager at Timber Hill LLC.
Furthermore, Moody's Investors Services in a recent report argued that the administration could have a difficult time actualizing the proposed $1 trillion in infrastructure spending amid political disagreements and regulatory approval issues like environmental reviews and litigation.
The S&P financial index .SPSY retreated 2.87%, biggest drop since June, led by Bank of America Corp's 5.77% and Goldman Sachs Group Inc's 3.72% fall.
The Dow Jones Industrial Average was down 237.85 points, or 1.14%, to 20,668.15, the S&P 500 dropped 28.25 points, or 1.19%, to 2,342.00 and the Nasdaq Composite lost 107.70 points, or 1.83%, to 5,793.83.
Headlines from the U.S. session
- North Korea will pursue "acceleration" of its nuclear and missile programmes - RTRS
- Infrastructure investment will be slow to ramp up - Moody's
- As we move closer to our goals it will be time to remove accommodation - Fed's Kashkari
- The US financial crisis still casts a long shadow - Westpac
- OPEC's oil production cuts are having unintended consequences - Goldman Sachs