The S&P 500 and the Dow were set for their worst day since October as the lack of details on economic policy in Donald Trump's speech took the wind out of a record-setting post-election rally. The losses were broad-based. All of the 11 major S&P 500 sectors were lower, with the technology, financial and industrial sectors all down 1 percent or more.
In his first news conference since election, Trump on Wednesday gave no details on tax cuts or infrastructure spending. He instead lashed out at US spy agencies and media houses over what he called a 'phony' Russia dossier. Trump also blasted pharmaceutical companies over high drug prices, causing health stocks to snap a six-day winning streak and a wobble on Wall Street. "Some wind has been taken out of the reflation trade, at least for the short term," said Jeff Zipper, managing director at the Private Client Reserve, US Bank in Florida.
"There is a high probability of more volatility if his agenda does not go through or may take longer than he expects." At 11:06 am ET the Dow Jones Industrial Average was down 177.03 points, or 0.89 percent, at 19,777.25 and the S&P 500 was down 20.34 points, or 0.89 percent, at 2,254.98. The Nasdaq Composite was down 65.74 points, or 1.18 percent, at 5,497.91, set for its biggest one-day drop since December 1. The CBOE Volatility Index or Wall Street's "fear gauge", ticked up 11.6 percent, the most since the US election.