The S&P 500 fell 1.4 percent last week. It slipped 0.1 percent on Friday after President Donald Trump failed to secure enough votes to pass his health-care bill.
However, Patti Domm at CNBC wrote on Friday that the market is likely to shrug off the health-care debacle.
“The market is expected to quickly move past the fallout from the House's failure to vote on a plan to replace Obamacare, and watch the play by play on President Donald Trump's promise to start work on reducing corporate and individual taxes,” she wrote.
“If they can get past this and move on to Trump's other programs, the market will breathe a sigh of relief,” Art Hogan, chief market strategist with Wunderlich Securities, was quoted as saying.
“I don't think it necessarily spells doom and gloom for the rest of the pro-growth agenda,” said Tom Simons, money market economist at Jefferies.
“If the president didn't deliver 100 percent, you were bound to get some kind of insecurity in the stock market, but I think what people are forgetting is the underlying fundamentals are still there, and that's what's going to drive the stock market,” said Richard Bernstein, CEO of Richard Bernstein Capital Management.
Writing at Forbes, Tom Aspray agrees.
Aspray said that “the stock market is not on ice that is thin enough to indicate a new bear market” and “I expect stocks to survive Trump's big legislative failure”, but added that “a further correction is now more likely”.