After a few weeks that made it seem like the markets were not unhappy about new US President Donald Trump, the Dow and S&P 500 saw their biggest falls of 2017 – and largest drops since the election on Monday (30 January).
Most commentators feel this is due to Trump's latest executive order, a temporary travel ban on refugees and people from seven Muslim majority countries. The order is seen as a warning that while having a business mogul in the White House might seem good for companies, some of his other plans may not be as market-friendly.
The Dow Jones Industrial Average dropped almost 123 points while the S&P 500 fell 13.8 points – a fall of 0.61% and 0.60% respectively. Assets that are traditionally viewed as safe were also bolstered, such as gold and the yen.
In a note quoted on MarketWatch.com, the chairman and chief investor at Cumberland Advisors, David Kotok, said: "For these current market prices to be justified, the Trump agenda must unfold perfectly. But the reverse is under way, and fragmented policy combined with obfuscation is now a growing detriment to growth acceleration."
The Nasdaq Composite also fell 47.07 points, 0.83%. Indexes in other countries also dropped – Australian shares were down 0.9% while the Nikkei in Japan slid 0.5%.