Wall Street remains under pressure as Trump trade unwinds

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US stocks remained under pressure on Wednesday, a day after jitters over President Donald Trump’s ability to deliver on his business-friendly policies triggered a sharp sell-off.

Growing signs that Mr Trump might not be able to rally the votes needed to pass his healthcare overhaul have cast doubts over the administration’s chances of pushing through hoped-for politics like a proposed tax cut, infrastructure spending and deregulation that have powered stock markets to record highs after highs this year.

The worries prompted the benchmark S&P 500 index to drop 1.2 per cent yesterday, breaking a run of 109 trading days without a drop of 1 per cent or more. The Dow Jones Industrial Average and Nasdaq indices also suffered their biggest falls of the year.

Wednesday offered these indices little reprieve, with the Dow and the S&P 500 both opening 0.2 per cent lower and the Nasdaq down 0.1 per cent in early trade.

Investors also continued to seek safety in government debt, gold and the yen.

Yield on the 10-year Treasury is down another 1.8 basis points to 2.4 per cent, while gold firmed 0.4 per cent higher to a three-week high of $1,248.98 per troy ounce.

The dollar remains on the ropes, dropping 0.1 per cent following yesterday’s 0.6 per cent slide. It is down 0.5 per cent against the yen and lost 0.3 per cent against the Swiss franc, both haven currencies.

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