U.S. stocks indexes opened lower on Tuesday following a recovery yesterday that saw the Dow, S&P 500, and Nasdaq rising over 1 percent to begin the week after 2 weeks of higher volatility and selling pressure that has crept into the market in 2018.
U.S. stock indexes rose over 20 percent in 2017 during President Trump’s first year but after rising another 10 percent in early 2018, stocks have pulled back and are nearing correction territory.
Yesterday, President Trump released his large scale $4.4 trillion budget that raises federal spending nearly $400 billion above current levels and includes big cuts to Medicare and Medicaid to help the poor under a $3.6 trillion deficit reducing plan.
Trump’s fiscal budget has little hope of survival in its current form and makes a request of $ 18 billion for a new border wall, and a $1.5 trillion dollar infrastructure plan.
President Trump claimed on Twitter this morning that his infrastructure plan has received great reviews by everyone except the Democrats and said that now we have to fix our roads, bridges, tunnels, airports, and more.
Our infrastructure plan has been put forward and has received great reviews by everyone except, of course, the Democrats. After many years we have taken care of our Military, now we have to fix our roads, bridges, tunnels, airports and more. Bipartisan, make deal Dems?
— Donald J. Trump (@realDonaldTrump) February 13, 2018
Economic data is light today in the market.
Tomorrow investors will pay close attention to an inflation report that will come forward with the Consumer Price Index (CPI) report for January followed by U.S. retail sales for the same period.
Both economic reports will provide a snapshot about inflation and spending levels in the U.S. economy.
On Thursday another inflation report (PPI) will come into focus.
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