>> Wall Street's love affair with President Trump may be hitting a rough patch. The American stock market, which has set several record highs since Trump's surprise victory, Tuesday suffering through its biggest slump since September. I'm Conway Gittens in New York. Wall Street has been optimistic that President Trump would begin to make progress on his pledge to boost economic growth.
Particularly when it comes to cutting taxes. But with the fight over healthcare, revealing a big rift within his own party. Wall Street is now concerned that tax cuts may not even get done. A corporate tax cut could boost profits for US companies, while a personal income tax cut could help juice retail sales.
With that now in doubt, retailers like Best Buy, Macy's, and Gap were all among the day's stock market losers. But second guessing Trump wasn't the only reason behind the market's swoon. Investors are also re-thinking the outlook for the Federal Reserve. Sellers admitting recent prediction of three or more rate hikes this year were too optimistic.
Slower rate increases would mean less revenue for the banking sector prompting investors to dump bank stocks. Goldman Sachs, one of the biggest drags in the Dow falling 4%. This market slide could just be the beginning. A survey of global investors released Tuesday show mostly the market has rallied too much on what it hopes Trump will do.
And actually needs to see more action in order for the so-called Trump Bump to continue.