NEW YORK, March 27 (Xinhua) — U.S. stocks opened sharply lower Monday as investor sentiment was dented after the House pulled a key healthcare bill ahead of a vote last Friday.
House Republicans pulled their healthcare bill on Friday as they failed to corral enough support for it, throwing the future of one of their top legislative priorities into serious doubt.
The House vote is crucial for U.S. President Donald Trump’s agenda. Trump had said the repeal and replacement of Obamacare must happen before action can be taken on his other plans, including a major tax reduction.
Analysts said there appears to be growing concerns that Trump’s tax reform, infrastructure spending and deregulation may take longer to pass than initially thought.
“In the wake of Friday’s healthcare debacle, Trump tweeted ironic congratulations to the Freedom Caucus for saving Obamacare and is reaching out to Democrats. Markets are shaken, to say the least, at the possible end of the Trump trade,” said Chris Low, chief economist at FTN Financial, in a note.
There is no major economic report due Monday.
Shortly after the opening bell, the Dow Jones Industrial Average dropped 145.58 points, or 0.71 percent, to 20,451.14. The S&P 500 lost 18.04 points, or 0.77 percent, to 2,325.94. The Nasdaq Composite Index declined 48.60 points, or 0.83 percent, to 5,780.14.
U.S. stocks declined Friday, with the Dow logging a seven-day losing streak.