keep calm tax reform

Stocks had their worst day in months on Tuesday. The S&P 500 Index retreated more than 1 percent for the first time since October, and the small-cap Russell 2000 Index gave back more than 2 percent for the first time since September. As of today, the Dow Jones Industrial Average has been down nine out of the past 10 days.

Throwing a monkey wrench into the Trump rally this week was fresh uncertainty House Republicans could successfully repeal and replace Obamacare, one of their headline campaign promises for seven years now. Failure to do so, it’s believed, could seriously push back tax reform. And the promise of tax reform—along with deregulation and infrastructure spending—is arguably what’s driven the Trump rally.

This uncertainty was confirmed today when President Donald Trump asked House Speaker Paul Ryan to pull the new health care bill from consideration—a stunning setback for the new president, who largely ran on his credentials as a master negotiator and closer.