The big test for the stock market's Trump rally may be President Trump himself.
Wall Street's post-election surge was built on hopes of a "pro-growth" agenda getting swiftly implemented. Investors bet big that Trump's promises to slash taxes, unleash infrastructure spending and cut regulation would accelerate the sluggish American economy.
But those hopes are already getting undercut by Trump's turbulent first days in office.
Instead of focusing on pushing his stimulus plans through Congress, as investors had hoped, Trump is instead acting first on polarizing issues like the ban on travelers from seven majority-Muslim nations. The White House has also taken an aggressive stance on trade, raising concerns on Wall Street over the risk of a trade war.
In other words, investors want tax cuts and spades in the ground, not deeply divisive travel bans.
After a weekend of confusion and protests over the Trump travel ban, the Dow on Monday dropped as many as 223 points before closing down 123 points.
It's not a panic, but still qualifies as Wall Street's worst day since Trump's victory. The VIX (VIX), a gauge of market volatility, spiked by 12% - the biggest increase in nearly three months.
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