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Wall Street sinks on tax cut fears

Tuesday, March 21, 2017 - 01:32

Investors worried that President Trump will struggle to deliver promised tax cuts. As Fred Katayama reports, the Dow and S&P 500 had their worst one-day performances since October.

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Sharp selloff on Wall Street. The S&P 500 and Dow lost more than 1 percent Tuesday in their worst one-day performances since October. A fall in bank shares pressured the indices as investors worried that President Donald Trump will have a hard time delivering on his promised tax cuts. Vespula Capital's Jeff Tomasulo: SOUNDBITE: JEFF TOMASULO, CEO, VESPULA CAPITAL, (ENGLISH) SAYING: "This morning, you had a bunch of congressmen come out. The President met with these congressmen about healthcare. Right, because the main thing is that and the President has been saying this, and it's been the talk on the Street, you need to pass healthcare before you can move on to the tax cuts and deregulation." The benchmark Treasury's yield fell further. The dollar dropped for the fourth time in the last five sessions. Among the bank stocks suffering the biggest drops: Bank of America and Goldman Sachs. A Goldman executive told CNBC the investment bank plans to move hundreds of people out of London. It's part of its contingency plans in rseponse to Britain's decision to leave the European Union. Apple shares shot up to an all-time high before falling. It unveiled a $329 iPad, the lowest price ever for a full-sized Apple tablet. It also doubled the storage size of its iPhone SE. After the bell, FedEx shares fell. The courier's quarterly profit rose but missed analysts targets. Nike shares also fell after reporting disappointing revenue amid stiff competition with Adidas and Under Armour. In Europe, materials and tech stocks slumped, pulling the markets lower.

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Wall Street sinks on tax cut fears

Tuesday, March 21, 2017 - 01:32