The Dow Jones Industrial Average fell more than 400 points, the biggest drop since June 2016, on the same day President Trump will deliver his first State of the Union address.
The Dow dropped to 26,028 on Tuesday afternoon, roughly 400 points below Monday’s close, the largest single-day drop under President Trump.
By 3:00 pm, the Dow was still down more than 300 points, the second straight day of losses for the Dow.
Analysts blamed today’s losses on health care, technology, and energy stocks.
Despite today’s losses, the President was still expected to tout the country’s economic gains and continue to credit himself for the stock market that is up more than 8,000 points since he was elected in 2016.
As of Monday’s close, the Dow is up 45% since Trump was elected and 34% since he took office.
The Dow closed at about 7,949 on President Obama’s Inauguration Day in 2009 and closed at 19,732 on Obama’s last full day in office. This represents a 148 percent increase over eight years.
The Hill added:
But the booming equities market has triggered concern among policymakers that investors could be overvaluing stocks, setting up a nasty correction. Wall Street veterans say traders see an approaching end to the Trump stock boom, partially due to rising interest rates around the world.
As economies around the world continue recovering from the economic crisis, central banks are slowly drawing back the stimulus they used to ignite the process.
The Federal Reserve is expected to hike rates at least twice this year after three rate hikes in 2017. Bringing rates back toward the historic neutral position gives the Fed more room to respond to the next crisis and would likely put a damper on some equities investment.