US investors suffered their worst day in more than three months following President Donald Trump’s administrative ban on immigrants. Trump signed an executive order which bars citizens from seven Muslim-majority countries — Syria, Iraq, Iran, Sudan, Libya, Somalia and Yemen — from entering the US for 90 days. His policy also stops refugees coming to the US for 120 days. Tens of thousands of people in the US protested against Trump’s immigration actions. Companies such as Goldman Sachs, Nike and Starbucks also showed their support against the ban.
“The market is reacting negatively right now because of the uncertainty that it creates”, said Robert Pavlik, chief market strategist at Boston Private Wealth. “If it can pull more Republicans off of the president’s following and maybe weaken his strength in Congress then you start to wonder about the other initiatives that may not get passed”. After Trump’s promises to cut taxes and simplify regulations, the US equities hit record highs in November. Stocks rose at the opening bell ahead of Trump’s inauguration as the 45th president of the US. However, following his protectionist policies and the lack of clarity, markets are at risk. The Dow Jones, which climbed 9.2 per cent after Trump’s election, has managed to increase with only 1 per cent after his inauguration on 20 January and fell below the historic high of 20,000 that it hit last week.
Five of the nine declining sectors of the S&P 500, including financials and technology, were down more than 1 per cent. The top drags on the S&P 500, Facebook and Apple, are expected to report their earnings this week. Alphabet and Microsoft and some of the Airline stocks, including American Airlines, United Continental and JetBlue, were also down.