US Stocks Post Biggest Drop in 2017 amid Trump Travel Ban Upheaval

U.S. stocks fell the most since the November election, while Treasuries advanced with gold as Donald Trump’s order on immigration raised concern that he may follow through with isolationist policies touted on the campaign trail, overshadowing a pro-growth agenda.

The Dow Jones Industrial Average lost more than 200 points before paring the slide in the final half hour of trading. It finished below 20,000 after closing at a record Thursday. The S&P 500 Index registered its biggest loss of the year, as Trump’s ban drew a rebuke from some Republican lawmakers, raising the specter of a rift between the executive and legislative branches. The dollar fell versus the yen and gold advanced as investors favoured haven assets.

Here are the main moves in markets on Tuesday:

Stocks

· The S&P 500 fell 0.6 percent to 2,280.67 at 4 p.m. in New York, for its first three-day slide of 2017. The index fell as much as 1.2 percent before staging a late-day comeback. It’s up 1.9 percent in January and is higher by 6.6 percent since Trump’s election.

· The Dow fell as much as 223 points before paring the slide in afternoon trading. It lost 124.02 points on the day to end at 19,969.76, and is down 0.7 percent since closing at a record on Jan. 26.

· Energy shares sank 1.9 percent Monday as oil slipped below $53 a barrel in New York. Financial and technology stocks retreated more than 0.6 percent.

· The Stoxx Europe 600 Index fell 1.1 percent and emerging-market equities declined by 0.5 percent.

Bonds

· U.S. Treasury 10-year yields were little changed at 2.49 percent after falling as low as 2.46 percent earlier.

· Microsoft Corp. is returning to the market with a $17 billion deal to refinance its shortest-dated debt less than six months after it sought funds for its LinkedIn Corp. acquisition.

· European bonds fell after data showing Germany’s consumer price index accelerated to 1.9 percent from a year ago, the highest rate since July 2013. The yield on 10-year German bunds fell one basis point to 0.449 percent.

Currencies

· The Bloomberg Dollar Spot Index retreated 0.3 percent, pushing its loss in January to 2 percent.

· The yen climbed 1.3 percent to 113.675 per dollar.

· Mexico’s peso strengthened 0.5 percent to 20.7771.

Commodities

· West Texas Intermediate crude lost 1 percent to settle at $52.63 a barrel, capping a second straight day of losses.

· Gold rose 0.6 percent to $1,197.90 an ounce, reversing its first weekly loss in a month.

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