Majority of the US stock markets were down on Thursday’s close as analysts and investors wait for the GOP healthcare vote, which was delayed due to lack of support to pass the replacement bill for former President Obama’s Affordable Care Act, also known as Obamacare. The delay in the voting process for the healthcare plan contributed to the declined performance of Wall Street indices on Thursday.
Wall Street markets mostly experienced lower trading due to the uncertainties of the bill proposed by the White House.
Should the US House of Representative vote against the repealing and replacement of the Affordable Care Act with the new GOP Healthcare plan, it is deemed by many analysts that markets will likely plunge, indicating lack of confidence over Trump’s ability to follow through with campaign plans.
Wall Street Performance
Dow Jones Industrial continued falling from its record high of 21,000 and was down by 4.72 basis points or 0.02% to 20,656.58 on Thursday’s close. The S7P 500 closed 0.11% down to 2,345.96, down by 2.49 basis points, while the Nasdaq Composite Index also fell by 3.95 basis points or 0.07% to 5,817.69. Although, the New York Stock Exchange Index was up by 4.20 points or 0.04% to 11,430.89 on Thursday.
“If this thing gets materially delayed or if we get a ‘no’ vote, we’re going to see a horrific market reaction. But if they vote in the morning and it passes, we’ll have a hell of a rally,” said Longbow Asset CEO Jake Dollarhide.
Out of the 11 major S&P indices, seven fell along with the energy index .SPNY, down by 0.36%.
Under Nasdaq and the S&P 500, Google-parent company Alphabet Inc. was among the biggest drag, having declined a total of 1.19% to 817.58 at market close as companies began pulling out on the YouTube ads due to fears that such ads may appear alongside unpleasant videos.
Another bad performer was Accenture in NYSE, falling 4.52% to 120.76 following a missed earnings report, reporting lower-than-expected quarterly profits.
Ford Motors Stock also fell 2.2% to $11.53 per share after the company announced that it is expecting a less profitable 2017 on a pre-tax basis. Still, NYSE saw more surges from company stocks than underperformers, unlike other Wall Street composite indices.
Meanwhile, under NASDAQ, Five Below soared 11.74% after the company released an impressive quarterly earnings report.
Last Tuesday, S&P 500 saw its worst trading session since Trump’s election falling by 1.2% after 161 straight days without any declines higher than 1%. Until the trading day on Tuesday, most investors remained bearish over the US economy. The Dow has reached its fifth straight session of declines now.
In addition to that, Tuesday’s decline has put world stocks in the worst trading week since the US presidential elections in November.
The healthcare stocks are expected to see higher volatility during the entire process of the repealing and replacement of the Affordable Care Act.
GOP Healthcare Plan
Upon Trump’s inauguration, he and his assigned cabinet members immediately got to work on designing the replacement plan for Obamacare, the American Health Care Act. However, the constant lack of necessary details and clear plan of action has brought growing uncertainties.
Recently, more and more members of the House, as well as local citizen, investors, and analysts have expressed a lack of confidence over the proposed bill. Also, the Republican leaders failed to garner enough support in order to pass the GOP bill. Trump’s administration has been receiving opposition.
House Speaker Paul Ryan called for a delay of the press conference for the GOP plan since the White House failed to make a deal right away. With the delay in voting for the approval of the bill, Trump’s administration provided an ultimatum to House Republicans, stating to either come up with a final vote on the bill on Friday, or reject it altogether so that he can move on to other legislative priorities.
“We have been promising the American people that we will repeal and replace this broken law because it’s collapsing and it’s failing families and tomorrow we’re proceeding,” said Ryan following the Republican meeting
Even if the healthcare plan gets an approval by the House of Representative, the bill will still need to go through the Senate in order to be fully effective.
The healthcare plans stand as a test for the Republicans and Trump on their ability to go through with initial proposals and uniting the parties in the government. At present, most markets are awaiting the results of the legislative process. Friday’s performance relies heavily on the results that will be announced soon.
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