Stock market today: Wall Street drifts lower as the Trump trade cools
U.S. stocks slipped as juice ran out for the torrid “Trump trade” that swept Wall Street following Donald Trump’s presidential victory
NEW YORK (AP) — U.S. stocks drifted lower Tuesday as momentum cooled for the torrid “Trump trade” that swept Wall Street following Donald Trump’s presidential victory.
The S&P 500 slipped 0.3% a day after setting its latest all-time high. The Dow Jones Industrial Average dropped 382 points, or 0.9%, and the Nasdaq composite fell 0.1%.
Stocks had been broadly rising since last week on expectations that Trump’s preference for lower tax rates and other policies may mean faster economic growth, as well as bigger U.S. government debt and higher inflation. Some areas of the market rocketed on particularly high-grade fuel, such as smaller U.S. stocks seen as benefiting the most from Trump’s America First ideas.
They gave back some of their big gains Tuesday, and the Russell 2000 index of smaller companies fell a market-leading 1.8%. Even Tesla, which is run by Trump’s ally Elon Musk, sank. It dropped 6.1% for its first loss since before Election Day.
