U.S. equities and stock exchange traded funds rebounded Wednesday, with growth technology names leading the charge, as traders tried to capitalize on the biggest one-day pullback since the election.
The S&P 500 Index, along with related funds including the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and Vanguard 500 Index (NYSEArca: VOO), were 0.1% higher Wednesday.
The bounce comes off the worst day for the equities market since the election as major indices declined over 1%.
“What we’re seeing today is buyers being opportunistic and trying to gain entry into the overall market,” Robert Pavlik, chief market strategist at Boston Private Wealth, told Reuters. “That’s why we’re seeing tech and industrials stocks, which last a lot on Tuesday, lead today.”
Nevertheless, traders remained circumspect as the healthcare bill to replace the Affordable Care Act makes its rounds. Republican leaders are shooting for a move as early as Thursday in the House, which may provide further hints on how much opposition President Donald Trump will find when he decides to push forward with tax cuts and deregulation.
Some market observers are concerned that if Trump’s healthcare plan does not pass through Congress, the administrations other pro-growth economic policies may also be up against an uphill battle as well.
“The market was giving Trump somewhat of a talk-the-talk leeway,” Ryan Larson, head of U.S. equity trading at RBC Global Asset Management, told Reuters. “It was supportive of what the administration was talking about. We’re starting to get into a phase where that grace period is coming to an end and what the market wants to see more walk-the-talk as opposed to talk-the-talk.”
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