Reflation Trade Hangs in the Balance as Health Care Vote Looms
- Vote "a key litmus test" for Trump agenda, TD Securities says
- Reflation trade shows cracks on Tuesday as stocks, yields fall
This article is for subscribers only.
Analysts are zeroing in on the House of Representatives vote on the American Health Care Act as a linchpin for President Donald Trump’s ability to push through pro-economic growth policies -- and the market’s ability to cling to a faltering reflation trade.
A House divided over the repeal and replacement of former President Barack Obama’s Affordable Care Act -- enshrined as the Trump administration’s top legislative priority -- faces an uphill battle, reckon Wall Street analysts. Failure to reform could extend the sell-off that pushed the S&P 500 lower by drop more than 1 percent Tuesday for the first time since Oct. 11 as investors pared back bets that the administration will spark growth with tax cuts and infrastructure spending.