White House & Policy - March 13, 2026 (EOD)

 ## Policy Recap The administration took decisive action today with the signing of two executive orders aimed at boosting home ownership. These orders are designed to ease regulatory burdens and expand access to affordable housing, signaling a renewed focus on domestic economic growth and consumer confidence. The president’s directives emphasize streamlining federal housing programs and incentivizing private sector participation in housing development. In Congress, legislative activity remained subdued, with no major bills advancing that directly influenced market sentiment. However, ongoing discussions about trade policy and tariff adjustments continue to loom, particularly in light of the administration’s recent moves to withdraw a planned AI chip export rule, which alleviated some concerns in the technology sector. Additionally, the Commerce Department initiated new unfair trade practice probes into 60 countries over forced labor, underscoring a continued emphasis on trade enforcement that could affect multinational companies. Throughout the trading session, markets digested these policy developments with caution. The executive orders on housing were viewed as positive but incremental, while the trade probes and export rule withdrawal introduced mixed signals. The administration’s approach to managing geopolitical tensions, especially in the Middle East, also weighed on investor sentiment, contributing to volatility. ## Market Reaction The major U.S. indices closed lower amid the complex policy backdrop. The S&P 500 (SPY) fell 0.56% to $662.36, the Nasdaq 100 (QQQ) declined 0.65% to $593.35, and the Dow Jones (DIA) slipped 0.21% to $466.50. The Russell 2000 (IWM) also retreated 0.37% to $246.49. The market opened higher but gave back gains as geopolitical concerns and mixed policy signals took hold. Bond markets reflected a modest risk-off stance, with the 20+ Year Treasury ETF (TLT) declining 0.45% to $86.58, indicating rising yields as investors moved away from safe-haven assets. The U.S. dollar strengthened, supported by risk aversion and hawkish commentary from some administration officials regarding inflation and trade enforcement, with the UUP ETF up 1.12% to $27.99. Intraday swings were notable around announcements related to trade policy and the executive orders. The withdrawal of the AI chip export rule provided some relief to tech stocks early in the session, but gains were limited. Overall, risk sentiment shifted toward caution, reflecting uncertainty about the duration of geopolitical tensions and the impact of trade probes on global supply chains. ## Sector Scorecard - **Financials (XLF):** Gained 0.27% to $48.96, supported by optimism around the housing executive orders and steady banking sector fundamentals despite broader market weakness. - **Energy (XLE):** Rose 0.43% to $57.76, buoyed by escalating Middle East tensions and oil prices climbing above $100 per barrel, reinforcing energy sector strength. - **Industrials (XLI):** Declined 0.36% to $164.65, pressured by concerns over trade disruptions and geopolitical risks affecting supply chains and manufacturing. - **Technology (XLK):** Fell 0.83% to $136.70, weighed down by ongoing trade probes and uncertainty around export restrictions, despite the Commerce Department’s withdrawal of the AI chip export rule. - **Healthcare (XLV):** Slightly down 0.25% to $149.79, reflecting mixed investor sentiment amid sector-specific regulatory developments and broader market caution. ## Winners & Losers ### Today's Policy Winners **$APEI** +21.40% – Benefited from positive analyst coverage amid renewed focus on education-related policies and favorable market positioning. **$BA** +2.23% – Defense sector strength linked to increased Pentagon activity and geopolitical tensions in the Middle East. **$XOM** +1.74% – Energy sector gains driven by rising oil prices amid Middle East conflict and supportive administration rhetoric on energy security. **$CRDO** +5.14% – Private credit and finance sector buoyed by market interest in alternative lending amid trade and geopolitical uncertainties. **$JCAP** +6.53% – Private credit firm gained on investor interest as credit markets adjust to policy and geopolitical risks. ### Today's Policy Losers **$ACXP** -22.55% – Sharp decline following sector-specific regulatory concerns and broader market volatility impacting small-cap healthcare stocks. **$ADBE** -7.28% – Adobe’s stock fell amid CEO transition concerns and uncertainty over regulatory scrutiny related to online shopper laws. **$CAPR** -10.21% – Negative sentiment linked to policy uncertainty in biotech and healthcare regulatory environment. **$CRMT** -11.22% – Private credit and finance stocks faced pressure amid tightening credit conditions and geopolitical risk. **$KLC** -42.35% – Significant drop reflecting trade-related concerns and market reaction to tariff enforcement uncertainty. ## Trade & Tariff Update The administration’s decision to withdraw the planned AI chip export rule was a key development that eased some pressure on technology companies reliant on global supply chains. However, the Commerce Department’s initiation of new unfair trade practice probes into 60 countries over forced labor practices introduced fresh uncertainty for multinational firms. The probes signal a continued tough stance on trade enforcement, which could lead to tariffs or restrictions impacting import/export sensitive companies. Tariff-sensitive stocks saw mixed reactions. Technology firms like **$AVGO** (-4.27%) and **$ORCL** (-2.81%) declined amid concerns over potential trade barriers. Conversely, some energy and materials companies benefited from the geopolitical-driven commodity price surge, with **$XOM** and **$COP** posting gains. The market remains attentive to further trade developments, especially as the administration balances enforcement with economic growth objectives. ## Tomorrow's Policy Calendar - Congressional committee votes expected on housing and infrastructure bills that could complement today’s executive orders. - Pending executive order on semiconductor supply chain resilience anticipated, with potential market impact on tech and manufacturing sectors. - Treasury Secretary scheduled to speak on trade enforcement and tariff policy updates. - Senate hearing on geopolitical risks and energy security amid ongoing Middle East tensions. - Regulatory decision expected on financial sector oversight, potentially influencing bank stocks and credit markets. --- This session underscored the market’s sensitivity to U.S. government policy actions amid a complex geopolitical and economic environment. Investors should monitor upcoming legislative activity and executive decisions closely for cues on risk appetite and sector rotation.