A history-setting trading streak for Dow, S&P 500 just came to a screeching halt

A history-setting trading streak for Dow, S&P 500 just came to a screeching halt, by Mark Decambre.

The Dow Jones Industrial Average closed [down] 237 points, or 1.1%,  … while the S&P 500 index finished off 1.2% …. The two main stock-market gauges hadn’t finished with a decline of 1% or more for a history-setting 110 trading days.

The broad-market S&P 500’s streak without a 1% down day is the longest since May 18, 1995, while the Dow’s is the longest since Sept. 20, 1993, according to Dow Jones data.

U.S. stocks had enjoyed an uptrend in the wake of President Donald Trump’s election victory on Nov. 8, on the back of hope for a roll out of a raft of pro-business policies, including tax cuts, deregulation and a boost in infrastructure spending.

On Tuesday, some market participants attributed the slump in equities to fears that Trump’s legislative agenda as it pertains to Wall Street would face delays as the GOP-led health-care overhaul plans appeared set to struggle on congress.

The wheels fell off the market’s love affair with Trump, basically because he seems to have run into some problems with Congress and tax cuts are ultimately threatened. Money raced off to safe currencies like the Japanese Yen and away from “good times” currencies like the A$. Stock markets had a “terrible” day.

How terrible?  Well, it’s the first time in 109 days that the U.S. markets have fallen more than 1 %.  That’s the best run up in about a quarter of a century — about the same amount of near world record setting time that Australia has gone without a recession.

What happens next to (U.S.) stock markets?  Probably not much if the history of the last 100 years is any guide, BUT anything is possible and it remains the case that since about WWII, there has only been one time where there wasn’t a significant market crash within a year of the end of a two term President, which Obama was.  It’s also the case that U.S. stock markets normally stumble after the first 2-3 interest rate rises in a cycle ie. around now. Plus, by most usual yardsticks, the US stock market is very pricey.