Banks nosedive as Trump health care speedbump tanks stocks
NEW YORK (AP) — U.S. stocks took their biggest loss in five months Tuesday as a health care bill backed by President Donald Trump ran into trouble in Congress, which raised some questions about his agenda of faster economic growth spurred on by lower taxes and cuts in regulations.
Transportation companies including airlines, railroads and rental car companies dropped, and so did materials companies like steel and chemicals makers.
Small-company stocks, which stand to benefit the most from Trump's policy proposals of lower taxes and looser regulations, fell more than the rest of the market.
"President Trump promised that this health care bill would be signed, sealed, delivered within the first couple of weeks of him taking office," said Jack Ablin, chief investment officer for BMO Capital Markets.
On Thursday the House of Representatives is scheduled to vote on the Republican-backed American Health Care Act, and despite support from the president on Tuesday, it's not clear if the House or the Senate will approve the bill.
The administration hopes to get a major tax reform package to Congress by August, and a big infrastructure spending proposal may follow next year.
Kate Warne, an investment strategist for Edward Jones, said investors are taking some profits after the market's long post-election winning streak, but noted that Wall Street is especially eager for the administration's tax reform proposals.
The Cheerios maker faces more competitive pricing and a market that has been shifting demand from processed foods.
In other energy trading, wholesale gasoline lost 1 cent to $1.61 a gallon.