After healthcare loss, investor faith wavers as Trump turns to taxes
Source: Reuters
Mon Mar 27, 2017 | 12:12pm EDT
By Megan Davies and Chuck Mikolajczak
U.S. stocks slid on Monday amid concerns that Republican President Donald Trump may struggle to push a sweeping overhaul of the tax code through Congress in the wake of his party's failure last week to pass broad healthcare legislation.
Trump's pledge to cut taxes, including a lowering of the rates paid by corporations, was a pillar of his 2016 presidential campaign and provided much of the fuel for the heady stock market rally that followed his Nov. 8 victory.
The White House has sought to refocus attention on that part of Trump's agenda since the collapse on Friday of a Republican bill to reshape the U.S. healthcare system largely by gutting Democratic former President Barack Obama's 2010 healthcare law. "The markets aren't really concerned about healthcare," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas. "What the markets are concerned about is tax policy. So now the more important issue has come to the forefront. The question is, will they be able to get that done? I don't know."
The major U.S. stock indexes were down, with the S&P 500 0.3 percent lower, while benchmark 10-year Treasury notes were up 11/32 in price for a yield of 2.36 percent after hitting a one-month low in yield earlier.
Read more: http://www.reuters.com/article/us-usa-tax-idUSKBN16Y1YK
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