Traders work on the floor of the New York Stock Exchange. Photo: Reuters/Lucas Jackson

After markets slid on a rethinking of the Trump trade amid a US congressional failure on health care, stocks recovered sharply on Tuesday.

The Dow Jones Industrial Average ended an eight-session string of losses, with gains of 0.7%, while the S&P was up the same amount following a flat showing yesterday.

Paul Ashworth of Capital Economics, speaking to the Financial Times, said that, despite the Trump administration’s setback last week, his firm hasn’t changed expectations of a US$2 trillion tax cut package by the early next year.

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