Sat Nov 16 01:26:35 UTC 2024: **Wall Street Plunges on Trump’s Vaccine Choice and Economic Uncertainty**
NEW YORK (Nov 10) — US stocks suffered their worst day since October today, with the S&P 500 falling 1.1% and the Dow Jones Industrial Average down 250 points (0.6%). The Nasdaq composite fared even worse, plummeting 1.9%. This downturn follows a week of market gains fueled by Donald Trump’s election victory and the Federal Reserve’s interest rate cut.
The biggest drag on the market was President-elect Trump’s nomination of Robert F. Kennedy Jr., a vocal anti-vaccine activist, for Secretary of Health and Human Services. Vaccine makers Moderna (-7.4%) and Pfizer (-3.6%) took significant hits on concerns about potential policy changes impacting their profits. While Kennedy’s confirmation is far from certain, analysts warn of significant uncertainty in the healthcare sector should he assume office. Raymond James analyst Chris Meekins stated that Kennedy’s appointment could fundamentally alter expectations surrounding Republican healthcare policy and potentially discourage experienced Republican staff from joining the department.
Adding to market woes, Applied Materials (-8.5%) fell sharply despite reporting better-than-expected quarterly profits, due to a less optimistic revenue forecast. The overall market’s recent high valuation, with stock prices outpacing earnings growth, is also contributing to the sell-off.
Despite today’s drop, the S&P 500 remains up over 23% for the year. However, rising Treasury yields, reflecting concerns about increased government deficits and inflation under a Trump administration, are tempering investor enthusiasm. The Federal Reserve’s stance on future interest rate cuts is also less certain, with Chair Jerome Powell signaling a cautious approach.
Mixed economic data further clouded the outlook. While retail sales showed unexpected strength, excluding autos, the numbers were weaker than anticipated. Manufacturing activity in New York State, however, showed robust growth. Internationally, London’s FTSE 100 fell 0.1%, while Tokyo’s Nikkei 225 gained 0.3%.
First Piper 