The GOP’s Decision to Delay the AHCA Vote Is Already Affecting Stock Markets
It looks like investors affected by this week’s stock market slump aren’t out of the woods yet.
U.S. stock markets turned south Thursday after House Republicans announced that the health care bill vote scheduled for later in the day was delayed. After rallying earlier in the day, the S&P 500 dropped 2.49 points—or 0.11%—while the Dow Jones industrial average continued its five-day slide, dropping 4.71 points or 0.02%.
The sell off in the Dow was led by United Health Group, which fell 1.04%.
Traders have been following the AHCA for signs that President Donald Trump and Republicans could cooperate on future policies. That includes pro-economic growth proposals such as infrastructure spending and lower corporate tax rates. But now, as the proposed Obamacare replacement begins to hit speed bumps, the euphoria surrounding Trump’s ambitious economics agenda appears to be waning.
At the same time, investors also appear to have little confidence in Trump’s income tax promises.
That said, the slump is not as bad as it could have been — losses so far are contained to below 1%.