President Trump’s first foreign tour shifted the market’s focus away from his FBI scandal to new, multi-billion-dollar defence deals signed in the gulf region, resulting in a relief rebound in energy and defensive stocks last night. 

The three major US stock indices continued to rise last night, with the Dow closing up 0.43% at 20,894, the S&P 500 rising 0.52% to 2,394 and the Nasdaq surging 0.82% to 6,133.

Investors are also waiting for the White House’s budget proposal to be rolled out on Tuesday, which might involve massive cuts to the Medicaid social safety-net programs, while increasing Pentagon and border-security spending. Budget cuts over the next ten years are estimated to total US$1.7tn.

Treasury Secretary Steven Mnuchin will testify about Trump’s 2018 budget plan in the White House, in the president’s absence. 

This will be key to revitalising market confidence, especially as the market has started to ramp up its questions over the Trump Administration’s ability to drive reforms, due to the recent political turmoil.

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