The market was powering higher and higher when all of a sudden the rug was pulled out, and I’m not sure why just yet. There was a lot of news from the Supreme Court including a major victory for President Trump on his travel moratorium. It’s hard for me to connect the dots from that news to 100 Dow points vanishing in a blink, but the market did swoon quickly.
In the process, that upside gap-open was closed, which might actually make technicians feel better. The real weakness is in technology and other momentum names. For the moment, I’m having trouble pinpointing a specific reason. However, rotation into utilities is underscoring the fact something spooked the market just as all the major indices were approach new all-time highs.
While the nations on the White House travel ban aren’t sources of technology talent, there is a chance some are extrapolating this victory as an opening for tougher immigration policies from nations that are sources for tech talent.
Today, President Trump is also meeting with India Prime Minister Modi where a big topic will be H1-B visas and new requirements being urged by the administration. They call for minimum annual salaries of $130,000. This would mean much larger payouts for Indian firms, which notoriously underpay their American counterparts.