On Sunday, US Equity Index Futures fell to a six-week low in a sign Wall Street would start the week defensively after Republicans pulled legislation to overhaul the US healthcare system in a stunning setback for President Donald Trump.
Markets were unnerved last week by Trump’s inability to get enough support for legislation to reform the US healthcare system, a major 2016 election campaign promise of the president and his allies.
Investors had worried that the difficulties with the health bill could delay other legislation such as tax reform. Trump said he would now turn his attention to getting “big tax cuts” through Congress.
S&P 500 e-mini Futures were down over 0.65%, shortly after electronic trading resumed on Sunday evening.
Volume of more than 17,000 contracts in the first 30 minutes marked the heaviest trading activity to kick off a week since Trump took office. That was roughly 2-1/2 times the average of fewer than 7,000 contracts in early Sunday evening trading since the inauguration.
US Treasury Futures were up 0.18% also, indicating that Yields would start the week lower when Bonds start trading in Asia later.
News that Republican leaders pulled the bill broke just before the markets closed on Friday, sending stocks lower. For the week, the S&P 500 fell 1.4%, its worst weekly decline of the year.