Stocks Lower Early Monday 03/27 09:25
Stocks around the world sank Monday on worries that the Trump White House
may not be able to help businesses as much as once thought. Many of the trends
that have been in place since Election Day went into sharp reverse: The
dollar's value sank against other currencies, as did bank stocks, while prices
jumped for Treasury bonds.
NEW YORK (AP) -- Stocks around the world sank Monday on worries that the
Trump White House may not be able to help businesses as much as once thought.
Many of the trends that have been in place since Election Day went into sharp
reverse: The dollar's value sank against other currencies, as did bank stocks,
while prices jumped for Treasury bonds.
KEEPING SCORE: The Standard & Poor's 500 index fell 17 points, or 0.7
percent, to 2,326, as of 9:35 a.m. Eastern time. The Dow Jones industrial
average lost 157, or 0.8 percent, to 20,438. The Nasdaq composite dropped 53,
or 0.9 percent, to 5,776.
Small-company stocks, which have outpaced the rest of the market since the
election, fell even more. The Russell 2000 index sank 18 points, or 1.3
percent, to 1,336.
The stock market had been on a nearly nonstop rip higher since Election Day
on the belief that President Donald Trump and a Republican-led Congress will
cut income taxes, loosen regulations for companies and institute other
business-friendly policies. Besides stronger economic growth, investors were
also predicting higher inflation would be on the way.
But last week's failure by Republicans to fulfill a pledge they've been
making for years, to repeal the Affordable Care Act, raises doubts that
Washington can push through other promises. The House on Friday pulled its bill
to revamp the country's health care system, when it was clear that it didn't
have enough votes to pass.
DOLLAR DUMP: The dollar fell against most of its major rivals, including the
Japanese yen, euro and British pound. The ICE U.S. Dollar index, which measures
the U.S. currency's value against six others, has given up nearly all of its
big gains since Election Day.
YIELDS DROP: The yield on the 10-year Treasury fell to 2.35 percent from
2.41 percent late Friday. That's close to its lowest level in a month. It was
above 2.60 percent just a couple weeks ago. Two- and 30-year Treasury yields
BANKS SINK: Bank stocks have tracked the movements of Treasury yields
recently, because higher interest rates would allow them to charge more for
loans and reap bigger profits. Financial stocks in the S&P 500 dropped 2
percent, by far the largest loss among the 11 sectors that make up the index.
AN ANXIOUS MARKET: The VIX index measures the market's nervousness by
looking at how much traders are paying to protect against upcoming drops in the
S&P 500. By that measure, investors are feeling the most jittery since
mid-November, shortly after Election Day. The VIX jumped 12 percent Monday.
GOLD GLITTERS: The price of gold jumped $11.20, or 0.9 percent, to $1,259.70
per ounce. If it holds there, it will end the day at its highest settlement
price since the day after November's election.
Silver rose 38 cents to $18.13 per ounce. Copper, whose price tends to rise
and fall with expectations for economic growth, fell 4 cents to $2.59 per pound.
MARKETS ABROAD: Stocks were weak around the world. In Asia, Japan's Nikkei
225 index dropped 1.4 percent, South Korea's Kospi index lost 0.6 percent and
the Hang Seng in Hong Kong fell 0.7 percent. In Europe, the German DAX lost 1.1
percent, the French CAC 40 fell 0.5 percent and the FTSE 100 in London dropped
OIL: Benchmark U.S. crude fell 72 cents to $47.25 per barrel. Brent crude,
used to price international oils, lost 72 cents to $50.20.