As expected, President Donald Trump issued executive orders Friday to revise the rules that implement the Dodd-Frank Act and instructed the Department of Labor to stop implementing the new fiduciary rule.
While no rules are being formally changed or blocked, Trump is asking the Treasury Department and regulators to draft revisions to these rules.
Stocks in the financial sector reacted positively on Friday, with Morgan Stanley moving up about 5.5% and Goldman Sachs roughly 4.5%.
The Dow Jones industrial average traded up about 0.8% at about 20,050, while the S&P 500 moved up 0.6% near 2,295. The Financial Select Sector SPDR (XLF) moved up roughly 2% to trade at $23.70.
Trump held a meeting with a group of high-profile business leaders at the White House early Friday, including Elon Musk, Jack Welch, EY Global’s Mark Weinberger and Stephen Schwarzman of the Blackstone Group.
Speaking on Fox Business TV after the meeting, which included talks on corporate tax reform, anchor Neil Cavuto said the stock market has performed very well since Trump’s election. “Are they frothy?” Cavuto asked. Schwarzmann replied with a twinkle in his eyes: “A lot of people have been buried trying to answer that question.”