The Dow Jones Industrial Average plummeted today amid investor fears of rising interest rates and a disruption in the health care market. The blue-chip index closed down 361 points, or 1.37%, to 26,078 — the second day of triple-digit declines and the worst daily drop since August.
That’s an inconvenient truth for President Donald Trump, who’s expected to tout an economy that’s “roaring back to life” during tonight’s State of the Union address.
“America is open for business, and we are competitive once again,” Trump said in a speech last week at the World Economic Forum in Davos, Switzerland, that previews tonight’s remarks.
Indeed, the S&P was off to a robust start to the year, thanks to healthy corporate earnings, a new, lower federal tax rate and a strengthening economy.
But investors freaked out today following reports that Amazon, Berkshire Hathaway and JPMorgan Chase plan to form a company to tackle health care costs for their employees — an announcement that triggered a selloff of health-care stocks.
Meanwhile, the 10-year U.S. Treasury note reached 2.73% — a sign that investors see a risk of rising inflation.
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