The wobbly mid-week at the Wall Street is all indicative of the importance of getting the healthcare bill passed by the Congress. The Republicans have to get the healthcare bill passed that will lead to the repeal and replacement of Obamacare on Friday. The bill was due for voting on Thursday, but the Republicans delayed the vote probably because they too are getting jittery.
The markets lost 1% on Tuesday, which was the biggest 1-day fall for the indexes since October. This week is so far the worst week since Trump’s victory in November post which the markets were in the jubilant mood and making new highs.
If this healthcare bill of the Republicans fails in the Congress, then it would undermine the faith that the investors have shown in his election promises. He has ensured the nation that if he gets elected he will bring in the phenomenal tax reform helping in tax cuts and increased infrastructure spending. Till now, the markets were zooming on these two promises, but now the clouds of doubt are looming large on the business-friendly agenda of the new President of the United States.
Till the time it was assumed that the voting will take place as planned, the Dow Jones industrial average went up by 96 points, but then the doubts started favouring the bears. Though the smaller companies performed better on the index, it was the healthcare stocks that took the beating.
Near the close of the trading session, news came in that the Republicans have postponed the vote as they fear they don’t have enough support to get it passed.
The managing partner of Harris Financial Group, Jamie Cox said, “If the Republicans are having such a difficult time making changes to something they universally agree upon, how on earth they are going to agree on the more complicated tax cut that is coming through later in the year?”
This is, in fact, raising concerns among the investors as they have been betting on Trump’s election promises of tax reform, the boost in infrastructure spending, and debt ceiling increase from the past few months.
The Democrats are obviously against it, but there is a disparity between the Conservatives and more moderate Republicans too, over the bill.