Mar 24, 2017

Stocks whipsaw after Trumpcare fail

Traders work on the Mizuho Americas trading floor in New York. (Mark Lennihan/AP)

Markets took a turn for the worse Friday afternoon after it became increasingly clear that the House would not pass healthcare legislation. Late in trading, however, markets recovered most of those losses. The Dow closed down 0.28%, while the S&P 500 ended the day falling 0.08%.

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Data: Money.net; Chart: Andrew Witherspoon / Axios

Why it matters: Some investors are concerned that the lack of Republican unity on display will imperil policy— like tax cuts and infrastructure spending—that is especially important to corporate profits.

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Wall Street has its best year since 2013

Data: FactSet; Chart: Axios Visuals

Wall Street had its biggest annual gain in six years — with the S&P 500 rising 29% and the Nasdaq Composite rising 35% in 2019. The Dow lagged behind other indices, but saw its biggest yearly gain since 2017.

Why it matters: U.S. stocks rebounded from 2018's year-end meltdown to log impressive gains, despite uncertainty stemming from the trade war and a slowdown in economic growth.

Investors jump on the emerging markets bandwagon

Reproduced from TCW Group; Chart: Axios Visuals

A growing chorus of U.S.-based fund managers is betting that emerging market stocks and bonds are poised to outperform U.S. assets this year. The momentum for emerging markets has grown so strong that it has become almost a consensus trade, with investors even urging clients to buy EM junk bonds.

What's happening: Following 2019's blowout returns for U.S. stocks and strong performance for high yield, government and even municipal bonds, investors expect U.S. assets to fall to earth in 2020 and are positioning in emerging markets.

Go deeperArrowJan 14, 2020

Why it was so hard for investors to lose money in 2019

Illustration: Aïda Amer/Axios

2019 was the rare year when the simple investing strategy of targeting almost anything would have worked, the New York Times notes.

What happened: A series of interest rate cuts this year from the Federal Reserve — the first since the Great Recession — juiced the markets, making it a great time for investors.

Go deeperArrowDec 31, 2019