Markets across the US and Asia have been hit by the biggest falls since President Donald Trump was elected over fears he will not follow through on tax reforms.
"Trump trade" appeared to be unstoppable until last night, but it seems traders have started to fear Trump will not follow through on his promises about the US economy. By the close:
- The S&P 500 fell 1.24 per cent to 2,344
- The Nasdaq dropped 1.83 per cent to 5,793
- The Dow Jones was down 1.14 per cent at 20,668
Ken Odeluga, market analyst at City Index, said: "The sell-off shows a clear rotation out of shares widely cast as beneficiaries of Trump’s legislative intentions.
"Large industrials and bank stocks are among the biggest losers. Bank of America was the biggest faller in the benchmark for much of Tuesday’s session, leading a tumbling financial sector after it surged 20 per cent higher between the beginning of November and the end of 2016."
The end of the Trump rally has had a knock-on effect in Asia, adding to unrest sparked by yet another missile test carried out by North Korea. At time of writing:
- The Nikkei 225 was down 2.13 per cent to 19,041
- Hong Kong's Hang Seng fell 1.39 per cent to 24,250
- The Shanghai Compostie was down 0.49 per cent at 3,246