(Corrects to remove extraneous apostrophe in first paragraph) * Congress pulls healthcare bill on Friday * Bank stocks, dollar drop; gold hits one-month high * Goldman responsible for shaving 45 points off Dow * Indexes down: Dow 0.82 pct, S&P 0.86 pct, Nasdaq 0.93 pct By Yashaswini Swamynathan March 27 (Reuters) – Wall Street’s main indexes hit theirlowest levels in six weeks on Monday after Republicans pulled ahealthcare bill, raising questions about President DonaldTrump’s ability to deliver on his ambitious economic agenda. The bill, which was set to overhaul the Affordable Care Act,or Obamacare, was Trump’s first major legislative move. Bank stocks, which had outperformed in the post-electionrally on bets of tax cuts and simpler regulations, took abeating on Monday. Bank of America was down 3.6 percent and JPMorgan 2percent, with the two stocks being the biggest drag onthe S&P 500. Goldman Sachs fell 3 percent, shaving 45 points offthe Dow. The S&P 500 financial index was off 2.2 percent, farunderperforming the other eight losers among the major S&Psectors. “The markets around the globe are falling as a rethinking ofthe ‘Trump Trade’ begins to focus on reality,” Peter Cardillo,chief market economist at First Standard Financial in New York,wrote in a note. “While we don’t expect a full-blown correction to commenceat this time, we do see rising negative sentiment replacing the’Hope Trade’.” The dollar, which had found favor on the possibility of taxcuts and higher infrastructure spending, hit its lowest sinceNov. 11, while prices of safe-haven gold shot up to one-monthhighs. Utilities and real estate – thedefensive plays of the S&P 500 – were the only ones in theblack. At 9:40 a.m. ET (1340 GMT), the Dow Jones Industrial Average was down 169.57 points, or 0.82 percent, at 20,427.15,the S&P 500 was down 20.16 points, or 0.86 percent, at2,323.82 and the Nasdaq Composite was down 54.35 points,or 0.93 percent, at 5,774.39. Investors will look forward to comments from Chicago FederalReserve President Charles Evans and his Dallas counterpart,Robert Kaplan, for clues on the timing of the next interest ratehike. Fed Chair Janet Yellen is scheduled to speak at a conferenceon Tuesday in Washington. Declining issues outnumbered advancers on the NYSE by 2,113to 587. On the Nasdaq, 1,928 issues fell and 486 advanced. The S&P 500 index showed six 52-week highs and six lows,while the Nasdaq recorded 11 highs and 33 lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing byAnil D’Silva)
December 19, 2024
