The end of the Trump party?

Steep fall in US equities could be first sign of market doubting US administration's ability

The steep fall in US equities last week after a continuous rally since Donald Trump’s election is being viewed as the first signs of reversal of the Trump trade. The 10 per cent rally since November 2016 was based on the expectation of a quick and large stimulus from the new administration, both in terms of higher spending and lower taxes. But equity markets are now sobering up as doubts have emerged over the ability of the government to deliver its pro-growth agenda. The reflation trinity of rising stocks, rising yields and rising dollar has faced a setback.
 
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