U.S. President Donald Trump’s first major legislative move to overhaul the U.S. healthcare system had another setback after Republican leaders in the Senate abandoned the healthcare bill aiming to repeal and replace Obamacare.
The collapse of the bill in Senate renewed worries over Trump’s ability to deliver on other agenda including tax cuts, deregulation and infrastructure spending that have pushed the stock market to record highs. Notably, no major legislative achievements were made in the first six months of the Trump presidency, casting serious doubt over its administration.
Additionally, the healthcare bill is being seen as a testament to Trump’s pro-growth policies that would accelerate economic growth and increase inflation.
Further, the move could result in a severe political tussle between the Senate and the House, and between the White House and Congress. As a result, markets are losing confidence in Trump’s administration and its promises.
The event has led to risk-off trading with lower risk securities, including precious metals and bonds, in vogue. Given this, we have highlighted a few ETFs that could benefit or drop in the wake of fading hopes of Trump reforms.