Market Extra: Suddenly, stock-market investors fear Trump will drop the fiscal-policy baton

Remember how 2017 was going to be the year that fiscal policy took over from monetary policy in fueling economic growth and, presumably, corporate profits? It took a while, but that central expectation is now subject to growing doubt, and some investors say that’s why stocks are finally suffering a long overdue pullback.

“I think stock prices were bid up on the idea monetary policy and fiscal policy would be working together. What’s happened now is you have monetary policy tightening through the Federal Reserve and fiscal policy is looking less certain,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston, which has $2.4 trillion in assets under management, in a phone interview.

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