Trump slump: Stocks fall as hopes fade for new administration

Stocks in the United States are sinking as the market loses confidence in Washington’s ability to deliver on President Trump’s campaign promises.

Wall Street’s core stock indices hit their lowest levels in six weeks Monday morning, according to Reuters, the first full day of trading since Republicans abandoned a bill to repeal and replace the Affordable Care Act.

Wall Street Journal reports that the Dow Jones Industrial Average is on track to have its longest losing streak since 2011.

The Dow Jones, Nasdaq and S&P 500 all sunk roughly 1 percentage point upon the start of trading, regaining some ground by noon. Banks, mining and oil companies are on track for losses despite being some of the best-performing stocks immediately after the election.

Stocks had consistently rallied for nearly four months after Trump’s election victory. Despite initially plunging on election night, stocks soared as investors expected Trump’s promised corporate tax cuts and deregulation to boost U.S. businesses.

Trump and his aides tried to take credit for the stock boom, claiming businesses know his agenda would create jobs and boost economic growth. Treasury Secretary Steven Mnuchin said that the market was “absolutely” a report card for the administration’s economic policy.

The market began its downturn in mid-February as Republicans struggled to unite behind a plan to repeal and replace ObamaCare. Investors started losing confidence in Trump’s ability to work with Congress and turn campaign promises into ratified policy.

Analysts warned then that there would be little room for stocks to grow without proven wins from Washington.

“People need to be a little more sanguine and not be afraid of missing out, because what they could be missing out on is a major-league correction,” Daniel Alpert, an investment banker and economist, told The Hill. ”That’s a fairly risky position to be in.”

The failure to move forward with healthcare reform cost the Trump administration even more investor optimism. The failure of the healthcare bill could complicate promises to reform the tax code and approve billions in public and private infrastructure funding, two potential business boons.

The stock downfall has also forced the Trump administration to walk back its previous efforts to tie itself to the market boom. White House press secretary Sean Spicer said last week that stock success was only one of many metrics for economic success.

“You can’t look at one indices and say that’s the benchmark for an entire economy,” said Spicer. “You see confidence levels both in small business and other surveys that show there’s continued confidence in the market.”