Skip to main content

U.S. equity futures at six-week low after Trump healthcare setback



U.S. equity index futures fell to a six-week low on Sunday in a sign Wall Street would start the week defensively after Republicans pulled legislation to overhaul the U.S. healthcare system in a stunning setback for President Donald Trump.


S&P 500 e-mini futures ESv1 were down over 0.65 percent, shortly after electronic trading resumed on Sunday evening.

Volume of more than 17,000 contracts in the first 30 minutes marked the heaviest trading activity to kick off a week since Trump took office. 

That was roughly 2-1/2 times the average of fewer than 7,000 contracts in early Sunday evening trading since the inauguration.

U.S. Treasury futures were up 0.18 percent Sunday, indicating that yields would start the week lower when bonds start trading in Asia later.

Markets were unnerved last week by Trump's inability to get enough support for legislation to reform the U.S. healthcare system, a major 2016 election campaign promise of the president and his allies.

Investors had worried that the difficulties with the health bill could delay other legislation such as tax reform. 

Trump said he would now turn his attention to getting "big tax cuts" through Congress.

Speaking on "Fox News Sunday," White House chief of staff Reince Priebus said the administration was open to working with moderate Democrats and Republicans to pass other aspects of Trump's agenda, such as revamping the tax code.

David Ader, chief macro strategist at Informa Financial Intelligence, said about the failed health care bill: "The friction in Washington over all this is tempting to extrapolate to Trump's broader economic plans - lower taxes, fiscal stimulus - in that these, too, may stumble or at least retreat from the levels initially offered."

News that Republican leaders pulled the bill broke just before the markets closed on Friday, sending stocks lower.

For the week, the S&P 500 fell 1.4 percent, its worst weekly decline of the year.

The equity run-up since Trump's election, which was largely based on expectations of tax cuts and deregulation of financials, appeared to be waning, said Putri Pascualy, managing director and partner at Pacific Alternative Asset Management Company, which manages or advises $24 billion in assets.

“Recent market pullback tells me that some of the euphoria is starting to ebb as reality sinks in," Pascualy said. 

"Congress can throw a big wrench into how some of these plans are going to be executed.”


Mark Grant, chief strategist and managing director at Hilltop Securities, recommended investors move into 5-10 year corporate bonds “because I don’t see stocks posting double-digit returns after their huge run-up since the elections.”

Comments

Popular posts from this blog

Armenian protesters block traffic, railways & airport as protest leader loses PM bid

Anti-government protesters disrupted traffic in Armenia’s capital, blocking railways and roads leading to Yerevan International Airport, after the parliament voted against opposition leader Nikol Pashinyan’s bid for interim PM.
Protesters managed to block streets connecting downtown Yerevan to residential districts, disrupting transportation in Armenia’s capital, footage from the scene shows. 
Yerevan’s metro system has also been paralyzed as demonstrators sit on the tracks, preventing trains from passing.
Meanwhile, protesters disrupted traffic on a road leading to Yerevan’s Zvartnots International Airport, located just 12km from the center of the city. 
Consequently, some passengers had to go the rest of the way on foot in order to catch their flights, according to Sputnik news agency.
Railway services have also been disrupted all across the country amid the demonstrations, a spokesman for South Caucasus Railways confirmed to Interfax. 
Some other highways, including the one connecting th…

Iran Killing Command: The use of firearms in dealing with protesters

The document you see on the image is the order of the commander of the Tehran repressive force to all the units based in the city.

Based on this agenda, the mercenaries of the corrupt government Islamic Republic of Iran have been allowed to use firearms in the event of any protest movement against people by the regime.
This is a murder command.
The repressive force of the law, known to the world's famous police and guardians, should protect the lives of its citizens, by freeing their mercenaries, they allow them to murder Iranians who are protesting the corruption in the government and you have the important message that if you come to the streets in protest of corruption and torture and massacre, we will kill you.
Because, according to criminal Khomeini, maintenance of the system is obligatory.
A corrupt government that is so hideous that spend billions of dollars from the national treasury and popular capitalto the suppression of its people and the countries of the region, must be ov…

ایران فرمان قتل : دستور استفاده از سلاح گرم در برخورد با معترضان

سندی که در تصویر میبینید دستور فرمانده نیروی سرکوبگر انتظامی تهران به همه یگانهای مستقر در این شهر است.
بر اساس این دستور کار ، مزدوران حکومت فاسد نظام جمهوری اسلامی اجازه یافته اند که درصورت بروز هرگونه جنبش اعتراضی از سوی مردم علیه رژیم ، از سلاح گرم استفاده کنند.
این دستور یک فرمان قتل است.
نیروی سرکوبگر انتظامی که به ظاهر و تعریف شناخته شده پلیس در سراسر جهان ، میبایست حافظ جان شهروندان باشد ، با آزاد گذاشتن دست مزدوران چکمه پوش خود انها را مجاز به قتل ایرانیان معترض به فسادهای موجود درلایه های حکومت میکنند و این پیام مهم را در خود دارد که اگر در اعتراض به  فساد و شکنجه و کشتار به خیابانها بریزید شما را خواهیم کشت.
چرا که به گفته خمینی دجال، حفظ نظام از اوجب واجبات است.
حکومت فاسدی که انقدر وقیح هست که میلیاردها دلار از خزانه ملی و سرمایه مردمی را صرف سرکوب مردم خود و کشورهای منطقه میکند باید سرنگون کرد.
اکنون چهل سال است که کشور ما به اشغال این ملایان جنایکتارخونخوار و اسلام تحمیلی در آمده است .
هنوز باورش برای برخی سخت است که درک کنند کشور ما به معنای واقعی کلمه از سوی بنیادگرایان الله…