Markets are signaling caution after investors greeted President Donald Trump’s election with enthusiasm.
Bets on higher economic growth, inflation and interest rates—which became known as the “reflation trade”—have eased since the election. The yield on the 10-year Treasury note is lower than it was when Mr. Trump took office, including a decline Wednesday after the White House unveiled its tax proposal. The U.S. dollar has retreated from a 14-year high hit after the election.
Many popular postelection wagers took a hit last month after Republicans failed to repeal and replace the Affordable Care Act, which highlighted the difficulties they could face advancing new legislation even while holding the White House and both houses of Congress.