U.S. equities have been rallying since the election on hopes and optimism that the new Trump administration would enact pro-growth policies to fuel the high-flying market valuations. However, some traders and investors are expressing concerns that the Trump trade is overbought, which makes the equities market vulnerable to quick turns.

Some are worried that House Republicans may not garner the necessary votes to replace the Affordable Care Act, or Obamacare, further fueling concerns over Trump’s ability to pass his planned tax cuts and deregulation initiatives, which have been supporting the recent bounce in the financial sector.

Moreover, a dip in 10-year Treasury yields also put additional pressure on banks as weaker yields lead to lower interest rates on loans or depressed margins. Yields on benchmark 10-year Treasuries fell to 2.436% Tuesday.

“Bank stocks moved up dramatically because of the scaling back of regulation, the 10-year Treasury yield and the economy gaining momentum,” Quincy Krosby, market strategist at Prudential Financial, told CNBC. “There are also questions from the market on whether Republicans will be able to pass its health-care plan. The success or failure could act as an indicator on whether we get tax reform.”

For more information on the financial sector, visit our financial category.

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