Wall Street stock indexes closed lower on Monday as Trump’s ban on immigration was rejected by some key companies in the private sector and increased uncertainty in markets.
On Friday, President Donald Trump signed an executive order that temporarily bans the entry of Iraqi, Syrian, Iranian, Sudanese, Libyan, Somali and Yemeni muslim immigrants. Incoming doble passport citizens and holders of greencards were stopped in several airports, creating tension with human right activists. Trump said the order intends to keep radicals out of the country.
The Dow Jones industrial average broke the 20,000 mark after dropping by nearly 200 points during the day, with aircraft giant Boeing and investment bank Goldman Sachs leading decliners.
"This is not a policy we support, and I would note that it has already been challenged in federal court, and some of the order has been enjoined at least temporarily," said Lloyd Blankfein, Chief Executive Officer of Goldman Sachs, referring to Trump’s ban on travel.
The S&P 500 was dragged by energy and materials components, while The Nasdaq composite was down by more than one percent.
Dow Jones Industrial Average: -0.61 percent / 19971.13 points
Standard & Poor’s 500: -0.60 percent / 2280.90 points
Nasdaq Composite: -0.81 percent / 5613.71 points
US stock markets have been growing on the back of Trump's economic promises since the November 8 election, with the Dow Jones soaring more than 9.60 percent. Equities were able to retain gains even following the inauguration on speculation for a solid economic growth.
Monday was a light day for economic data, with pending home sales as the only report wroth following. According to the latest report, sales increased 1.6 percent in December, well-above expectations of a 1.1 percent build.
Today, investors will pay close attention to Conference Board Consumer Confidence index for January at 15:00 GMT. Economists are pointing downwards at 113.00 from a prior 113.7.