Dow slides nearly 240 as fear returns to market

Is the honeymoon period between Wall Street and President Trump over? The Dow fell by about 238 points Tuesday, a drop of more than 1%. It was its biggest slide of the year and biggest decline since the election. The broader S&P 500 was also down more than 1%. Neither index had ended the day with a 1% drop since mid-October. This was their worst day since September. This recent market weakness seems to be a sign that the market tone has shifted to a more negative one, at least temporarily. “We are currently experiencing multi-decade high extremes of optimism, and we view this euphoria as a warning sign,” said Brad Lamensdorf, founder of research firm LMTR, in a report Tuesday. Other market experts were suggesting that the slump was due to investors growing skeptical about how quickly things can actually get done in Washington. “President Trump’s legislative agenda is getting mired in a congressional swamp, as starry-eyed optimism runs headlong into bloodshot realism,” wrote BMO chief investment officer Jack Ablin in a note to clients Tuesday.