Markets fell on Monday.
The S&P 500 fell 0.6 percent, the STOXX Europe 600 fell 0.9 percent and the Nikkei 225 fell 0.5 percent.
Deutsche Bank analysts Jim Reid and Craig Nichol wrote in a note to clients on Monday: “It just seems that there are too many uncertainties, unknowns and major policy changes attached to a Trump presidency for it to be a smooth year.”
William Watts at MarketWatch wrote that “the path higher might no longer be so smooth”.
“The weekend chaos and backlash that followed President Donald Trump’s signing of an executive order late Friday temporarily restricting immigration from seven Muslim-majority countries was blamed for a “risk-off” reaction across global financial markets,” wrote Watts.
“Market bulls argue that Trump’s pro-growth agenda, which is centered on tax cuts, deregulation and infrastructure spending, remains a positive for the economy and markets,” he said, citing analysts at Wells Fargo Investment Institute, who wrote in a note that “these pullbacks due to uncertainties are likely to be opportunities to buy”.
However, he also noted a remark from David Kotok, chairman and chief investment officer at Cumberland Advisors, that Trump's “fragmented policy combined with obfuscation is now a growing detriment to growth acceleration”.