While the piece of good news for the industrial sector has helped keep markets going, many remain wary of ongoing political risks that may derail the Trump administration’s pro-growth agenda, such as Trump’s firing of former FBI head James Comey last week and reports of his administration’s links to Russia.
“Because we were down last week because of political news, the inverse is true too: that nothing bad happened over the weekend in political news,” Forrest added.
Observers fear that any further controversy in Trump’s administration would only serve to distract the president and his ability to push through expeditionary policies like tax cuts, deregulation and increased fiscal spending.
“Investors are growing skeptical,” Jack Ablin, chief investment officer at BMO Private Bank, said in a note. “The likelihood of President Trump’s pro-growth agenda getting signed into law is fading as the Administration and Congress fends off and sorts out the constant barrage of headlines.”
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