On Friday, House Republican leaders turned away from a bill to repeal Obamacare as support waned, fueling concerns that Trump’s other legislative efforts, like tax changes and infrastructure spending, could meet similar fates.
On the other hand, the health care sector strengthened, with the Health Care Select Sector SPDR (NYSEArca: XLV) up 0.2%, after healthcare traders breathed a sigh of relief that the ACA was here to stay for now.
Others, though, saw the recent setbacks and pullback in equities as a temporary fallout that could potentially lead to opportunities.
“This is the block in the Jenga game that at least topples part of the tower, but it’s not to say that the game is over,” Robert Pavlik, chief market strategist at Boston Private Wealth, told Reuters. “I think a pullback to 2,273 on the S&P 500, which is the 100-day moving average, is likely but it will not stay there. I think people will use this as a buying opportunity.”
The S&P 500 was hovering around 2,340 mid-Monday.
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