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Wall Street Loses Investors’ Trust after Trump’s ‘Broken Promises’ | ASHARQ AL-AWSAT English Archive 2005 -2017
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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 17, 2017. REUTERS/Brendan McDermid

London- US stocks lost ground late to end lower on Friday triggered by investors’ worrisome in regard of the Trump administration’s ability to implement its pro-growth agenda, following changes in the White House.

The Dow Jones Industrial Average .DJI fell 76.22 points, or 0.35 percent, to close at 21,674.51, the S&P 500 .SPX lost 4.46 points, or 0.18 percent, to 2,425.55 and the Nasdaq Composite .IXIC dropped 5.39 points, or 0.09 percent, to 6,216.53.

While the day’s losses were small, Friday marked the first time stocks haven’t risen the day after a more than 1 percent drop since Donald Trump was elected president on Nov. 8.

The week’s losses further dented the post-election rally, which was built on Trump’s promises of tax cuts and higher infrastructure spending.

Friday also was the eighth straight day in which the New York Stock Exchange and Nasdaq had more stocks making new 52-week lows than highs.

On the contrary, a key survey showed US consumer sentiment improved to its strongest level in seven months in early August, reflecting confidence in the outlook for the economy and in personal finances as the US stock market holds near record highs.

The University of Michigan’s consumer sentiment index rose to 97.6 in the first half of August from 93.4 the month before, which was an eight-month low. The result exceeded expectations for a reading of 94, according to a Reuters poll.

Whether that optimism holds in the weeks ahead, however, is a major question following recent events stemming from a white nationalist rally in Charlottesville, Virginia, said Richard Curtin, chief economist for the University of Michigan’s Surveys of Consumers.

Curtin said the backlash over Charlottesville and US President Donald Trump’s response could weigh on subsequent survey readings.