After the announcement of the results of the election, the US stocks were enjoying profits as positive economic growth was promised by the Trump campaigns. However, the reaction is not just the same after president Donald Trump took his office. The Wall Street has been pinning its hopes on reformative economic policies, and the investors were hoping for a big change. The recent executive orders have affected the investors as the US stocks continue to slide. There is a lot of uncertainty in the economy when Trump has plans to build a wall on the border and ban several Muslim immigrants from entering the country.
The immigration crackdown by the president has affected the US stocks in new ways. In fact Wall Street has recorded its worst day in this year just after the executive order was issued by the president. Several leaders in the technology sector have criticized Trump for his ban on immigrants. This could disrupt the business of several tech companies and they are now focused on helping their employees to minimize the consequences. The firing of attorney general, Sally Yates added much to the controversy.
A new analysis by David de Garis surfaced discussing controversial currency valuations. The trade adviser for Trump, Peter Navvaro has accused Germany of undervaluing Euro to exploit the EU partners. The dollar’s strength is questioned and it can lead to severe implications in the market.
UPS, the leading delivery firm lost 6% after it posted details about quarterly loss. The sales forecast for Armour was also undesirable and the shares tumbled as a result. Nike was also experiencing some problems with stock values. The Customer Confidence Index fell greatly resulting in losing the 15-year high position.
Both Nasdaq and S&P 500 experienced loss consecutively for three days. The DOW also closed below the 20,000 mark. Several US markets opened very low on Tuesday. The economists fear that the Trump rally may be over and the fall may be worse. The Wall Street had hoped that the president would focus more on economic growth and tax reforms as he promised. However, Trump issued administrative orders for building a wall and banning immigrants. The immigrants from Iran, Iraq, Syria, Sudan, Somalia, Yemen and Libya can’t enter United States as their visas are cancelled and no new visas will be issued for the next 90 days. Several protestors continue to flood the airports to support immigrant victims who lost their sense of belonging with just a single signature.
The economists believe that White House has already spend too much of the political capital for building a wall on the US-Mexico border. They also have to spend a lot of capital to defend the immigration vetting policy. This can result in major disruptions with Mexican trades and affect the tech companies on a much wider scale. Trump has however said that these promises are an integral part of his campaign. The Wall Street could only hope that Trump executes tax cuts and economic reforms with the same enthusiasm.