Investors turned off by Trump's protectionist talk
Dow gives back gains as new president paints picture of 'American carnage.' By BEN WHITE
NEW YORK — Wall Street did not exactly celebrate President Donald Trump’s deeply populist inaugural address on Friday, with the stock market losing some of its early gains as the 45th president spoke darkly of “American carnage” and promised a new era of trade protectionism.
The Dow Jones Industrial Average rose about 100 points before Trump took the oath of office but began slipping as the new president promised to protect the country from foreign trade. That was a signal to investors that harsh rhetoric from the campaign trail could soon be policy reality.
“We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs,” Trump said. “Protection will lead to great prosperity and strength.”
The direct invocation of protectionism surprised some on Wall Street who expected a more uplifting message from the new president. Big companies that make up major stock market indices tend to benefit from free trade and could see their profits hurt by significant import tariffs.
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