The seemingly endless political chaos in the nation’s capital reportedly is sparking fears that the record-setting stock market may be poised to take a dive.
Hopes of a Republican-controlled Congress “delivering tax cuts, infrastructure spending and deregulation have steadily faded since Donald Trump entered the Oval office in January,” the Financial Times reported.
The dollar has tumbled this year despite soaring after the election. “Meanwhile, a rally in the small, domestically focused US companies seen as the biggest beneficiaries of corporate taxes cuts and a stronger economy has fizzled,” the FT explained.
While the benchmark S&P 500 index is still up 13.5 percent since the election, it had fallen 2.1 percent in the last two weeks. That’s the most since the two weeks before the election, Reuters reported.
Concerns over lofty valuations have caused some investors to cut their exposure to U.S. stocks, instead favoring valuation multiples of companies based in