Wall Street stocks dipped early Wednesday in choppy trading following Donald Trump’s shock win in the US presidential election, as hopes of a pro-business agenda partially blunted the higher uncertainty.
Markets initially plunged in after-hours trading on Trump’s win, but steadied once trading opened, veering in and out of positive territory. Some analysts said the Republican’s pledges of increased infrastructure spending and lower taxes could boost the economy.
About 50 minutes into trading, the Dow Jones Industrial Average was down 0.1 percent at 18,316.03.
The broad-based S&P 500 lost 0.4 percent to 2,130.44, while the tech-rich Nasdaq Composite Index fell 0.6 percent at 5,162.27.
Analysts said the election outcome opens a period of policy uncertainty after Trump’s campaign favored a variety of potentially radical steps, including tearing up international trade agreements, putting political pressure on the Federal Reserve and pursuing a more friendly relationship with Russia.
“What people promise on the campaign trail and what actually happens are two different things,” said JJ Kinahan, chief market strategist at TD Ameritrade “So we’re still speculating until he actually takes office and the new Congress comes.”
“It’s now looking like a bad day, but no sense of panic.”
Jack Ablin, chief investment officer at BMO Private Bank, said the muted reaction seen the first day after the vote may not persist.
“Investors don’t like uncertainty and Trump’s presidency embodies uncertainty,” Ablin said. “Emotions will dominate market action over the next several trading days, potentially leading to exaggerated market swings.”
Pharmaceutical stocks, seen as vulnerable to price caps in a Clinton presidency, rallied. Pfizer surged 6.6 percent, Mylan 5.2 percent and Biogen 5.2 percent.
Bank stocks, which had also been seen as vulnerable to tougher regulation in a Democratic-led Washington, pushed higher. JPMorgan Chase jumped 3.7 percent and Bank of America 3.2 percent.
Caterpillar was another winner, surging 6.5 percent on anticipation of greater infrastructure spending.
But hospital stocks were pummelled in expectation Trump will follow through on a pledge to revoke Obamacare. HCA Holdings sank 16.4 percent, Tenet Healthcare 27.5 percent and Community Health 26.4 percent.
Technology stocks fell, with Apple losing 2.3 percent, Amazon 2.9 percent and Google parent Alphabet 1.7 percent.