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Mar 22, 2017

U.S. Stock Market Future Indications - March 22, 2017: Selloff in U.S. Stocks Set to Pick Up Again as "Trump Trade" Dwindles:
Sara Sjolin
Wall Street stocks were poised to build on the prior day’s sharp slump Wednesday, as investors grew concerned that the Trump administration will fail to deliver on its pro-business promises.
Futures for the Dow Jones Industrial Average YMM7, -0.18%  lost 38 points, or 0.2%, to 20,589, setting the blue-chip benchmark on track for a fifth straight session in the red.
S&P 500 index futures ESM7, -0.06%  lost 1.20 points, or 0.1%, to 2,340.75, while those for the Nasdaq-100 index NQM7, -0.05%  fell 3.25 points, or 0.1%, to 5,335.
On Tuesday, the Dow average DJIA, -1.14% and the Nasdaq Composite Index COMP, -1.83%  ended with their biggest one-day percentage losses since September, while the S&P 500 index SPX, -1.24%  posted its steepest drop since Oct. 11.
The selloff came as issues with the Republicans’ health care bill prompted investors question the President Donald Trump’s ability to follow through on promises of tax reforms and $1 trillion in infrastructure spending, according to Connor Campbell, financial analyst at Spreadex. A vote on the bill has been set for Thursday.
“Combine that with [The Wall Street Journal], a notably right-leaning publication, claiming that if Trump doesn’t ‘show more respect for the truth’ then ‘most Americans may conclude he’s a fake president’ and the optimism that caused investors to flock to the major indices has been seriously undermined by, well, Trump himself,” Campbell said in a note.
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U.S. stocks led a global rally after Trump was elected in November, boosted by hopes the new president would introduce measures to lift economic growth and lower taxes. However, with no detailed tax plans released yet, investors are starting to lose patience, analysts said.
“For some time now, equity valuations have been looking rather inflated, but this isn’t the first time we’ve seen a leg lower since the election — although the size of the selloff is certainly more pronounced,” said Tony Cross, market analyst at TopTradr, in a note.
“With FOMC member Esther George having mooted that there may be scope to remove stimulus measures too, the odds do seem to be building against Wall Street, and if the party ends abruptly, then those with significant long exposure risk being left with something of a hangover,” he added.
Economic news: On a relatively thin economic data calendar, a reading on existing home sales for February is due out at 10 a.m. Eastern.
See: MarketWatch’s economic calendar
Stock movers: Shares of Nike Inc. NKE, -1.14%  slid 4% ahead of the bell after the sportswear maker late Tuesday gave a downbeat outlook for sales growth.
Banks were also among premarket decliners, extending their losses from Tuesday. Bank of America Corp. BAC, -5.81%  was down 0.7%, Wells Fargo & Co. WFC, -3.09%  fell 0.6%, and Citigroup Inc. C, -2.60%  dropped 0.5%. Goldman Sachs Group Inc. GS, -3.77%  and J.P. Morgan Chase & Co. JPM, -2.93%  were both down 0.4%.
Other markets: Stocks in Asia closed sharply lower, tracking Wall Street’s Tuesday selloff. Europe was also covered in red, with the Stoxx Europe 600 index SXXP, -0.63%  down 1%.
Crude oil CLK7, -1.43%  slumped 1.6%, while metals mostly were lower. The ICE Dollar DXY, +0.08%  was up 0.1% at 99.87.