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Wall Street slips as calm returns to markets

Published 11/09/2016, 10:06 AM
Updated 11/09/2016, 10:06 AM
© Reuters.  Wall Street slightly lower after unexpected Trump White House victory

© Reuters. Wall Street slightly lower after unexpected Trump White House victory

Investing.com - U.S. stocks were lower after the open on Wednesday morning, but recovered after sharp slides in U.S. futures overnight following Donald Trump’s surprise victory in the U.S. presidential elections.

The blue-chip Dow 30 was almost flat by 10.08 AM ET, the S&P 500 index was down just 4 points or 0.21%, while the tech-heavy Nasdaq 100 was down 34.99 points or 0.68%.

Overnight the S&P 500 futures index slumped 5%, hitting a trading limit. CME Group rules do not allow its stock-market futures to fall by more than 5%.

S&P 500 futures pared back losses after Trump struck a conciliatory tone in his acceptance speech, thanking Democrat Hillary Clinton for her years in public service and vowing to "deal fairly" with other nations.

Trump also said America would embark on a national project of renewal and would have the strongest economy in the world.

Shares in steel producers along with defense and pharmaceuticals firms lead gains on expectations for an increase in infrastructure projects, military spending and less pressure on drugs prices.

Shares in U.S. drugs giant Pfizer (NYSE:PFE) jumped 6.95%, while Merck (NYSE:MRK) shares rose 4.36%.

Hillary Clinton in August had pledged to fight price-gouging by biotechnology firms, sending shares broadly lower.

Caterpillar (NYSE:CAT) shares also jumped, adding 6.91%, boosted by hopes for increased infrastructure spending.

But shares in healthcare firms tumbled amid expectations for major changes to Obamacare after Trump pledged to repeal the Affordable Care Act.

Insurance group Centene Corporation (NYSE:CNC) saw shares plunge 16%, making it the worst-performing stock on the S&P 500.

Private healthcare providers were also hit, with shares in Universal Health Services Inc (NYSE:UHS) dropping 8%.

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