US stocks extend bearish slide on uncertainty over Trump-reflation policies

after Tuesday big sell-off, major US equity indices witnessed yet another weaker opening and extended the bearish slide during opening hour of trade.

At the time of writing, the Dow Jones Industrial Average was lower by over 60-points to 20,605, while the broader S&P Index was down nearly 5-points to 2,340. Meanwhile, tech-heavy Nasdaq Composite Index lost around 4-points to 5,790. 

Investors now seemed concerned that the new administration might fail to deliver the pro-growth economic policies. The worries resurfaced on disappointing development on the US President Donald Trump's first legislation to dismantle Obamacare and prompted investors to question his ability to deliver on pro-business policies and $1 trillion in infrastructure spending.

Meanwhile, the ongoing sell-off in oil markets, with WTI crude oil hitting 4-month lows on Wednesday, also reduced investors' appetite for riskier assets - like equities. This coupled with post-FOMC slide in the US treasury bond yields has been weighing on financial stocks and collaborating to the ongoing corrective slide in equity markets. 

Technical outlook

Carol Harmer, Founder at charmertradingacademy.com writes, "DJI has hit its target overnight at 20611....reaching 20603...Now we seriously have to hold this support today to stop further selling pressure...you could see this was an accident waiting to happen....we have been saying this for days now....so what now...well 20590 breaking really does put us in a weaker position for 20435...what cant go up ...goes down....it really was that simple to sit back and see this....Now to take off downside pressure the buyers really need to take us back above 20830...can they do this...well sellers will be there armed and ready.. so id take the side of the sellers and leave quite tight stops..."