Stocks sink as 'Trump trade' flips into reverse - WFMJ.com News weather sports for Youngstown-Warren Ohio

Stocks sink as 'Trump trade' flips into reverse

Posted: Updated:

By STAN CHOE
AP Business Writer

NEW YORK (AP) - Stocks around the world sank Monday on worries that the Trump White House may not be able to help businesses as much as once thought. Many of the trends that have been in place since Election Day went into sharp reverse: The dollar's value sank against other currencies, as did bank stocks, while prices jumped for Treasury bonds.

KEEPING SCORE: The Standard & Poor's 500 index fell 15 points, or 0.6 percent, to 2,329, as of 10:25 a.m. Eastern time. The Dow Jones industrial average lost 141, or 0.7 percent, to 20,445. The Nasdaq composite dropped 29, or 0.5 percent, to 5,799.

Small-company stocks, which have outpaced the rest of the market since the election, fell even more. The Russell 2000 index sank 14 points, or 1.1 percent, to 1,340.

The stock market had been on a nearly nonstop rip higher since Election Day on the belief that President Donald Trump and a Republican-led Congress will cut income taxes, loosen regulations for companies and institute other business-friendly policies. Besides stronger economic growth, investors were also predicting higher inflation would be on the way.

But last week's failure by Republicans to fulfill a pledge they've been making for years, to repeal the Affordable Care Act, raises doubts that Washington can push through other promises. The House on Friday pulled its bill to revamp the country's health care system, when it was clear that it didn't have enough votes to pass.

DOLLAR DUMP: The dollar fell against most of its major rivals, including the Japanese yen, euro and British pound. The ICE U.S. Dollar index, which measures the U.S. currency's value against six others, has given up nearly all of its big gains since Election Day.

The dollar fell to 110.38 Japanese yen from 110.80 late Friday. The euro rose to $1.0883 from $1.0808, and the British pound rose to $1.2593 from $1.2500.

YIELDS DROP: The yield on the 10-year Treasury fell to 2.36 percent from 2.41 percent late Friday. That's close to its lowest level in a month. It was above 2.60 percent just a couple weeks ago.

BANKS SINK: Bank stocks have tracked the movements of Treasury yields recently, because higher interest rates would allow them to charge more for loans and reap bigger profits. Financial stocks in the S&P 500 dropped 1.4 percent, the largest loss among the 11 sectors that make up the index.

AN ANXIOUS MARKET: The VIX index measures the market's nervousness by looking at how much traders are paying to protect against upcoming drops in the S&P 500. By that measure, investors early Monday were feeling the most jittery since mid-November, shortly after Election Day. The VIX jumped 10 percent.

HEALTHY GAINS: Among the few gainers on the day were hospital stocks. The Republican health care plan would have resulted in 24 million additional uninsured people in a decade, according to a tally by the Congressional Budget Office. And hospitals take care of patients, whether they're insured or not.

HCA Holdings jumped $4.05, or 4.7 percent, to $90.09 for the biggest gain in the S&P 500. Universal Health Services rose $5.14, or 4.2 percent, to $127.03 for the second-largest gain.

GOLD GLITTERS: The price of gold rose $7.20 to $1,255.70. Silver rose 31 cents to $18.06 per ounce. Copper, whose price tends to rise and fall with expectations for economic growth, fell 6 cents to $2.58 per pound.

MARKETS ABROAD: Stocks were weak around the world. In Asia, Japan's Nikkei 225 index dropped 1.4 percent, South Korea's Kospi index lost 0.6 percent and the Hang Seng in Hong Kong fell 0.7 percent. In Europe, the German DAX lost 0.9 percent, the French CAC 40 fell 0.4 percent and the FTSE 100 in London dropped 0.9 percent.

OIL: Benchmark U.S. crude fell 70 cents to $47.27 per barrel. Brent crude, used to price international oils, lost 63 cents to $50.29.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • More From wfmj.comHot ClicksMore>>

  • Thousands sing 'Happy Birthday' to Queen Elizabeth II

    Thousands sing 'Happy Birthday' to Queen Elizabeth II

    Sunday, April 22 2018 8:25 PM EDT2018-04-23 00:25:36 GMT
    (Toby Melville/Pool Photo via AP). Britain's Queen Elizabeth raises her glass during speeches at The Queen's Dinner, during the Commonwealth Heads of Government Meeting at Buckingham Palace in London, Thursday, April 19, 2018.(Toby Melville/Pool Photo via AP). Britain's Queen Elizabeth raises her glass during speeches at The Queen's Dinner, during the Commonwealth Heads of Government Meeting at Buckingham Palace in London, Thursday, April 19, 2018.
    Queen Elizabeth II is marking her 92nd birthday with a star-studded concert in London.More >>
    Queen Elizabeth II is marking her 92nd birthday with a star-studded concert in London.More >>
  • 420's long, strange trip to pot holiday began in California

    420's long, strange trip to pot holiday began in California

    Sunday, April 22 2018 2:58 PM EDT2018-04-22 18:58:12 GMT
    (AP Photo/Eric Risberg). In this Friday, April 13, 2018, photo, the Waldos, from left, Mark Gravitch, Larry Schwartz, Dave Reddix, Steve Capper and Jeffrey Noel pose below a statue of Louis Pasteur at San Rafael High School in San Rafael, Calif. Friday...(AP Photo/Eric Risberg). In this Friday, April 13, 2018, photo, the Waldos, from left, Mark Gravitch, Larry Schwartz, Dave Reddix, Steve Capper and Jeffrey Noel pose below a statue of Louis Pasteur at San Rafael High School in San Rafael, Calif. Friday...
    Where are The Waldos? Not far from the San Francisco Bay Area high school where in 1971 the five buddies' search for a marijuana patch gave birth to the term 420, now the date for marijuana's high holiday and...More >>
    Where are The Waldos? Not far from the San Francisco Bay Area high school where in 1971 the five buddies' search for a marijuana patch gave birth to the term 420, now the date for marijuana's high holiday and universal slang for smoking weed.More >>
  • Trump says he doesn't think personal lawyer will 'flip'

    Trump says he doesn't think personal lawyer will 'flip'

    Sunday, April 22 2018 11:07 AM EDT2018-04-22 15:07:32 GMT
    (AP Photo/Mary Altaffer, File). FILE - In a Monday, April 16, 2018, file photo, Michael Cohen, President Donald Trump's personal attorney, center, leaves federal court, in New York. Federal prosecutors said they can give President Donald Trump's person...(AP Photo/Mary Altaffer, File). FILE - In a Monday, April 16, 2018, file photo, Michael Cohen, President Donald Trump's personal attorney, center, leaves federal court, in New York. Federal prosecutors said they can give President Donald Trump's person...
    President Donald Trump says he doesn't expect personal lawyer Michael Cohen to "flip" as the government investigates Cohen's business dealings.More >>
    President Donald Trump says he doesn't expect personal lawyer Michael Cohen to "flip" as the government investigates Cohen's business dealings.More >>
Powered by Frankly
All content © Copyright 2000 - 2018 WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms