New York: Wall Street stocks fell sharply Tuesday amid increasing doubts about the prospects for President Donald Trump’s agenda, especially ahead of a key congressional vote on health care in two days.
Leading stock indices finished with their steepest declines of the year as Trump travelled to Capitol Hill to pressure lawmakers ahead of a vote Thursday vote by the House of Representatives on a health care replacement bill backed by the president.
Analysts said sinking oil prices also weighed on stocks.
Of the major indices, the tech-rich Nasdaq Composite Index fell the most, losing 1.8 per cent to close at 5,793.83.
The Dow Jones Industrial Average shed 1.1 per cent to end the session at 20,667.95, while the broad-based S&P 500 dropped 1.2 per cent to 2,344.01.
Banking shares were especially weak, with Bank of America dropping 5.8 per cent and Goldman Sachs losing 3.7 per cent. The sector had been a highflyer after the election in anticipation of regulatory rollbacks promised by Trump.
“There seems to be doubt creeping in investors’ minds whether or not the deregulation that Trump talked about will be put into effect, as well as tax reform and lower tax rates,” said Bill Lynch, director of investment at Hinsdale Associates.
Jack Ablin, chief investment officer at BMO Private Bank, agreed. “President Trump’s legislative agenda is getting mired in a congressional swamp, as starry-eyed optimism runs headlong into bloodshot realism.”
Tech shares were broadly lower, with big declines suffered by Google parent Alphabet, down 2.1 per cent and Tesla Motors, down 4.3 per cent. Apple shed 1.1 per cent.
