A potential failure to pass the proposed Republican replacement to the 2010 health care law could result in investors wanting to sell, analysts say.
Before the vote on the bill was postponed, investors were reducing hopes President Donald Trump could swiftly enact the rest of his agenda, Reuters reported.
Concerns come after stocks saw their biggest one-day drop on Thursday since Trump won the election after they had rallied on Republican control of the White House and both chambers of Congress.
Investors said a failure to pass the bill or a delay could lead to uphill battles on other parts of Trump’s policy like tax cuts.
But investors said there is a risk only of a 5 to 10 percent drop in the market, not the 20 percent drop of a bear market, that could end markets’ eight-year rally.
Brian Daingerfield, macro strategist at NatWest Markets, said the vote is seen “as a test of Trump’s ability to unify the party.”