Today the house defeated the American Health Care Act. Early in the day this lead to strong drops across all equity markets as investors lost confidence, but by the end of the day the losses had been limited to healthcare companies and select financial institutions. The entire NASDAQ composite was actually up today as investors flocked to markets seeking bargain buys as other less confident investors backed out.
Overall the losses associated with this news have been very moderate (at least so far), and while a mild downward trend may continue throughout the week I doubt that much will change. Last time I wrote about this bill’s probable failure I singled out a few financial sectors that might start to slide but those stocks were already priced speculatively and it isn’t much of a surprise that they’re going to fall to more appropriate levels (look at companies like Traveller, and some of the larger reinsurers).