Skip to content

Trump Loss on Health Care Could Roil Markets

Investors dialing back expectations president’s agenda will be enacted swiftly

Investors are worried a failure on health care repeal and replace for President Donald Trump could weaken markets. (Bill Clark/CQ Roll Call)
Investors are worried a failure on health care repeal and replace for President Donald Trump could weaken markets. (Bill Clark/CQ Roll Call)

A potential failure to pass the proposed Republican replacement to the 2010 health care law could result in investors wanting to sell, analysts say.

Before the vote on the bill was postponed, investors were reducing hopes President Donald Trump could swiftly enact the rest of his agenda, Reuters reported.

Concerns come after stocks saw their biggest one-day drop on Thursday since Trump won the election after they had rallied on Republican control of the White House and both chambers of Congress.

Investors said a failure to pass the bill or a delay could lead to uphill battles on other parts of Trump’s policy like tax cuts.

But investors said there is a risk only of a 5 to 10 percent drop in the market, not the 20 percent drop of a bear market, that could end markets’ eight-year rally.

Brian Daingerfield, macro strategist at NatWest Markets, said the vote is seen “as a test of Trump’s ability to unify the party.”

Recent Stories

Out of sight, out of mind? Not this August

Trump-Thune tensions boil, but GOP leader seen as safe — for now

Maine Democrats pick Troy Jackson to replace Platner as Senate nominee

‘Godfather’ 1 or 2?  — Congressional Hits and Misses

The dubious rags to riches promise of Trump accounts

Wrapup: House hustles home while Senate stays the course