New York, NY — Markets can’t ignore Washington politics any longer.
Last year, investors calmly brushed aside every surprise that came out of Capitol Hill or the White House.
Whether it was President Donald Trump barring the arrival of travelers from certain countries, firing his FBI director or trying repeatedly to overhaul the health care industry, nothing seemed to knock markets off their steady, record-setting course that lasted through 2017.
Stocks recently have zoomed up and down on speculation about whether Trump’s decision to impose tariffs on imported steel will lead to a global trade war.
Now, though, markets are moving sharply either in anticipation of policy changes or upon their announcement.
Late last year, Washington approved big tax cuts for businesses, and investors sent stocks surging.
The difference is that Trump’s actions are now aiming at what the market cares most about: corporate profits.