The scandal caused by President Donald Trump’s announcement that the government is on spending moratorium forced infrastructure stocks to plummet to their lowest of the day.
Stocks that would benefit from government infrastructure spending are tumbling after Trump walked out of the meeting with Democrat leader saying that government spending is on halt while the Democrats are investigating him and his infra policies.
Stocks such as Granite Construction, Nucor, Martin Marietta Materials, Simpson Manufacturing, and Fluor slid down following the walk-out. Trump walked out of the meeting at the White House attended by House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Chuck Schumer, D-N.Y.
“I walked into the room, and I told Sen. Schumer and Speaker Pelosi, ‘I want to do infrastructure’ … but we can’t do it under these circumstances,” Trump told members of the press in the Rose Garden.
It is believed that the walk out was a response to Pelosi’s comment accusing that the “ president of the United States is engaged in a cover-up” by preventing White House aides from commenting and refusing document requests of the Congress regarding some investigations.
The meeting with the Democrats, which according to some sources only lasted for seven minutes, have caused individual infrastructure stocks to fall more than ETFs, including IFRA, the iShares U.S. Infrastructure ETF gone down 0.7%, and IGF, iShares Global Infrastructure ETF, which remained flat.
Art Cashin, director of floor operations at UBS, said that the infra program of the government is crucial for the market hence it reacted to the news a little amid the fact that infra stocks are already in the weaker end with the Dow Jones Industrial Average falling 96 points. The S&P 500 slipped 0.3%, with the tech sector sliding 0.2%. The Nasdaq Composite declined by 0.4%.
“They should care about that,” said Cashin.
“You don’t have anything else going on. The hope was for an infrastructure deal,” he said.